Reducing cost of material handling has been a big challenge for companies. Flexible manufacturing system employed automated guided vehicles (AGV) to maintain efficiency and flexibility. This paper presents a new non-linear mathematical programming model to group n machines into N loops, to make an efficient configuration for AGV system in Tandem layout. The model minimizes both inter-loop, intra-loop flow and use balanced-loops strategy to balance workload in system simultaneously. This paper significantly considers multiple-load AGVs, which has capability of reducing fleet size and waiting time of works. A modified variable neighborhood search method is applied for large size problems, which has good accuracy for small and medium size problems. The results indicate that using multiple load AGV instead of single load AGV will reduce system penalty cost up to 44%. تفاصيل المقالة