The proposed research is a conceptual study of how the facility location and layout planning influences effective decision making within the production environments. Facility layout and facility location planning are important parts of strategies with critical impacts on improving the efficiency of operation, the use of resources, optimizing the workflow, and the entire performance of the business in the manufacturing and service industry. The research question is to determine the impact of multidimensional independent variables that comprise of the factors of the location of facilities, i.e. economic feasibility, temporal proximity with the market, infrastructure and environmental factors, and layout planning factors, i.e. optimisation of the material handling, space utilisation, safety and integration of the technology on the unidimensional dependent variable; i.e. decision-making effectiveness that includes accuracy, timeliness, and quality of the production decisions. To achieve these aims, it is proposed to investigate the effect of facility location on operational efficiency and decision-making effectiveness, determine the effect of layout planning on workflow and resource utilization, understand how integrated facility location and layout planning can help in reducing the operational costs and increasing the productivity of a business, and gain a theoretical insight into how strategic facility planning contributes to the overall performance of a business. The paper relies on the experiences of the world, Africa, West Africa, and Nigeria in showing the significance of facilities, which are planned effectively to maximize the production activities and effective managerial decisions. The importance of the study is that it gives the production managers, planners and policymakers a conceptual framework on how to use the facility location and layout planning in their strategic operational choice. The synthesis of other theoretical and empirical sources related to manufacturing, healthcare, and service sectors demonstrate that strategic planning of the facility leads to the amplification of the efficiency of the working process and reduction of the number of expenses associated with the use of materials, the improvement of the timeliness and correctness of the production decision, and organizational competitiveness in the study. The research takes a conceptual research design where the literature review is conducted extensively and a model is drawn relating facility location, layout planning and decision-making effectiveness which provide a base on which future empirical studies and practical implementation of the same in the production management can be conducted.