Calling Scripts

This question stems from the numerous install errors that i have gotten when trying to create silent installs. Although it is much easier for one to use the hard work of other posters in this forum and use their premade installs like RyanVM, Shark007, and others, I would like, if not just for my own understanding how to do them myself without errors.

I understand mostly how to do such but the the one main question i have is when you have to call a script:

Example comes from Killerbees' post.

It says to write a script and call it setup.txt and put it in the same folder as setup.exe

Then call the setup.txt like

setup.exe -r:path\to\ooo\setup.txt -debug

Now my question:

If you want to make a 7zip silent install and you compress the setup.txt file in the same folder with the setup.exe how do you know the path to the setup.txt file? or do you have to put the setup.txt file somewere in the %oem% folder so that you know exactly were all your setup files are?