Since material handling does not add value to a product, its cost should be minimized by using appropriate handling equipments. Automated Guided Vehicle Systems (AGVS) are one of the handling systems that are used to perform the repeating handling process. Determining the type and appropriate number of vehicles are decision problems for an AGVS. In this study Analytic Hierarchy Process (AHP) is used to decide the vehicle type. Then the required number of vehicle is determined. A mathematical model is developed for the machine partitioning problem. The model provides the decision maker limit the number of machines in each loop. By introducing the capacity ratio, the utilization for the machines and vehicles are calculated. Three layout cases are formed to evaluate the efficiency of the results.