The article under consideration reviews the facility’s location and supply chain management as a crucial part of its strategic design. The paper proposes a literature review of the existing models of location facilities, determining the fundamental characteristics of the discussed models. This helps the decision-making process necessary for successful strategic planning. In particular, planning levels such as strategic, tactical, and operational are identified based on the time horizon. Furthermore, the planning issues are addressed regarding those where the reverse network complies with the forward network, as well as those with the focus on the recovery network. Additionally, other supply chain characteristics are discussed in the paper, such as financial factors divided into international factors, taxation incentives, and investment expenditures. Such risk management forms as uncertainties in customer demands and costs, disruption or delay of the supply chain, and the effects of stochastic demands are included in the analysis of the characteristics.
The possible optimization techniques and performance measures are reviewed to balance the risk factors and network issues under the supply chain strategies. Moreover, the paper analyzes potential ways of facility location models to supply chain network design among different endeavors. Finally, the authors state the need to research further the stochasticity and uncertainty in supply chain networks, the relevant tactical and operational decisions, and the integration of forward and reverse activities in supply chain networks. In general, the paper thoroughly investigates supply chain network planning and the role of facility location models. However, the authors might as well have addressed the expansion of the context of facility location decisions to integrate inventory management, reliability, and LTL vehicle routing to add to the features of the supply chain.