With increasing regulatory policies from countries, companies have to find an efficient way to set up their manufacturing units in other countries as well. Currently majority of the companies set up their manufacturing units in China as they are able to manufacture products at a cheaper price, however this will not work for the long term, as if the companies intend to sell their products in countries with restrictive import policies, they will have to diversify and set up their manufacturing units in that/those countries as well. To select the right location for setting up a manufacturing unit, a company must look into what we classified as Internal and External factors which we will be going in-depth further into the research paper. This research paper sets out to provide a framework to those companies that are looking to set up their own manufacturing units in a country using operation research tools such as Linear programming which includes visualizing the “Internal” factors as a transportation problem. One probable limitation of this research paper is assuming that the current demand for the products in the economy will remain equal to the forecasted demand or demand in the coming years after setting up the manufacturing units, demand will be used in the linear programming problems later in this research paper.