Automated Guided Vehicles (AGV) are becoming an increasingly popular system for performing materials handling functions in industry today. The design and implementation of an Automated Guided Vehicle System (AGVS) is a complex issue and involves many aspects. It is highly advisable to design and plan the system prior to its implementation. This project considers some of the key issues and parameters in the initial design phase of an AGVS for a company manufacturing anti lock braking systems for automobiles. The design of the AGVS is carried out using simulation-animation techniques. PROMODEL pc, a popular manufacturing simulator is used for developing the simulation models. Different AGVS alternatives are considered. A multi-attribute framework is used for developing and analyzing the AGVS alternatives. The recommended AGVS design alternative is chosen based on economic justification and satisfaction of the company's throughput requirements.