One of the key issues in mobile communication is to find the current location of mobile terminal (MT) to deliver the services, which is called as location management (LM). Increasing users and diverse services demand for a high-quality skeleton for LM. As an MT moves within a cellular network, it registers its new location to the nearest base station (BS). When a call arrives for an MT, the network searches the target MT in the area where it was last registered. This paper presents comprehensive classification of existing major LM schemes, their comparative study and factors influencing their performance. Finally, guidelines for developing and rating a LM scheme are suggested with the help of LPCIC rule, which is the main contribution of this paper.