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Models and Factors Used for Production Location Decisions: A Review and Categorizing Framework

The study of location has a long and extensive history. As this area of study has evolved, there has been an increased recognition of the challenges and the many significant external factors, driven by the changes of trends and criteria on location decisions. Whether it is the world economy, technology and environment issues, and it has affected the existing models used in production location decision.

The primary aim of this study was to review the broad base of literature of production location decision, especially on models and factors concerning the manufacturing and supply chain area. The thesis also uncovers previous research that has examined the current status concerning models and factors used in production localisation decision.

Following a brief quantitative analysis of the research area development, the project applied mainly a qualitative approach to the study. Literature databases, literature reviews and case study reports were used as data sources. Literature reviews were used as base for the description, explanation, exploration and correlation analyses within the study.

Based on existing literature, this thesis presents a framework to categorise the existing location models and factors. The framework presents the used models and factors in production location decisions. Three industrial case study reports (from master thesis projects from Väderstad, Alfdex and IKEA) were gathered and used to examine the researchers’ own synthetic framework and further explore the research questions.

The result is summarized in the framework that can lead users to understand the current status and the trend concerning the models and factors used in production location decision.
Source: Mälardalen University
Author: Thumawongchai, Veerayuth | Huang, Lu

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