Modern manufacturing firms face a plethora of challenges due to the growing trend toward shorter product cycles, more customized products and sustainable manufacturing (Mabkhot et al., 2018; Stock & Seliger, 2016). One concept that can be used to address these challenges is product traceability (Barata, et al., 2017). Numerous literature highlights the benefits and values that can be procured from adopting product traceability. But simultaneously literature also notes that the benefits and values from adopting product traceability are not automatic and it is required that a suitable/optimal traceability technique is implemented (Barata, et al., 2017; Terzi et al., 2007; Zsifkovits, 2020). However, determining which traceability technique is optimal for a manufacturing firm can be complicated, especially for steel manufacturing firms. Due to the harsh manufacturing environment in which they operate and the variety of traceability techniques available (Malik, 2009; Mautz, 2012; Schuitemaker, 2020; Zhang, et al., 2010). Based on this background, the purpose of this thesis is to develop a rational decision model for structuring the decision-making process of evaluating traceability techniques for a steel manufacturer. Determining optimal traceability techniques is a decision problem that requires evaluation. As such, the thesis will be founded on decision-making theory and methods. The research is operated through a single case study based on workshops, internal meetings and observations of a Swedish steel manufacturer. The insights gathered throughout the case study will then be used to incrementally construct the rational decision model.

The thesis concludes with a rational model for theoretically evaluating traceability techniques in the context of the steel industry using the decision-making method Analytical Hierarchy Process (AHP). The developed rational decision model establishes a systematic approach for determining the properties (alternatives for the decision, decision criteria and weighting of criteria) necessary for rational decision-making in the steel industry, as such information is scarce in the current literature. There are some limitations to the rational decision model. Its application is constrained to solely traceability in the steel industry and the model is merely based on a single-case study.