Abstract The choice of location is often one of the most important decisions usually taken in the procedure of building any production system. This paper considers the problem of location choice for such production systems where the basic and additional location factors can be identified. The basic location factors are transportation costs, production costs and duration of transport. The additional factors are bottleneck time, building costs, infrastructure costs, labour costs, weather conditions, expansion possibility and transportation po possibilities. The importance of the basic location factorswill be solved by the use of a parametric approach for the multicriterial transportation problem and in this way the set of all efficient solutions will be found. After that the location choice (among these efficient solutions) will be found by the use of the PROMETHEE method which takes into account the above mentioned additional location factors.