A Framework for Sustainable Supply Chain-Oriented Industrial Location Decisions

Abstract

The location of industrial sites is an important factor in defining the performance of the supply chain and long-term competitiveness. The cost and the infrastructure factors had traditionally influenced location decisions, and increasing environmental and social issues have broadened the focus to be on approaches related to sustainability. The conceptual framework presented in this paper incorporates the three aspects of economic efficiency, environmental responsibility, and social well-being in the process of selecting sites besides aligning the three with the drivers of the supply chain, which include cost, responsiveness, resilience, and green logistics. An examination of major research studies reveals how research of the past has utilized the application of multi-criteria decision-making techniques, geographic information systems, and hybrid models in the assessment of industrial locations. The suggested framework emphasizes the need to balance between efficiency and sustainability, offer managerial, policy and research perspectives. The future directions lay in the focus on quantitative validation, the incorporation of AI/ML, the utilization of digital twins, and the emergence of sustainable industrial networks. The research provides background to the further development of site selection as a strategic practice and sustainable one.