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In order to compete with other countries, automation has been implemented in the different industries in Taiwan to promote the production speed and lower the cost. Automation is dependent of the facility layout, which integrates labors, devices, materials, transportation equipment and so on. A good facility layout can upgrade the production operation. In a material handling system, the material handling id usually reflect the efficiency of a facility layout. The guide path layout for an automated guided vehicle system (AGVS) is a critical component in the overall design of a flexible manufacturing system (FMS) that utilizes AGVs for materials handling. Not only does it affect the total distance traveled by the vehicles but it also affects the number of vehicles and the space utilization. Thus, the design of the AGV routing is an important topic in a FMS. In this paper, an efficient method is proposed for concurrently solving the layout and guide path decision problems. An algorithm is proposed which integrates the facility layout procedure, the branch and bound technique and simulated annealing (SA). By using this layout procedure, an initial layout can be acquired. Then SA is used to find a better layout. The branch and bound technique is then used to find the optimal guide path whenever a new layout is generated. An example will be used to illustrate the application of the algorithm.
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