Towards Sustainable Facility Location – A Literature Review

Abstract

Facility location methods play a crucial role in specifying the optimum location options for various types of facilities. A question that arises is what makes a facility location decision a sustainable one? Facility location, also known as location analysis, is a known concept in the literature, but sustainable facility location is not. This requires appropriately defining the concept and framing the problem in order to address the relevant issues. Facility location models in the existing literature do not effectively include all the requirements of sustainable development. This paper serves as a discussion of the current literature concerning the sustainability aspects of the location problem. The aim is to conduct a comprehensive literature review to identify the characteristics of the sustainable facility location problem and propose a framework for classification of sustainability characteristics. The study shows that the location literature has steadily progressed toward considering not only economic but also social and environmental criteria in location decisions; but that many steps remain to be taken toward developing location models that integrate all three aspects of sustainability into decision making. The main motivation for the current study is to provide a foundation from which issues of sustainable development can be built into facility location and siting models.