Most of the companies are forced to cut down the manufacturing cost to survive in the competitive environment. Among others, material distribution cost alone takes substantial portion of the total manufacturing cost. In this study, we investigate the waiting phenomenon in the toll gate and propose a new toll booth layout to reduce the waiting time, thereby reduce the total material distribution cost. SIMAN, a simulation language, is employed to evaluate the proposed layout. The experimental results show that the layout reduces the waiting time significantly. Furthermore, the result indicates that determination of the intermediate buffer space affects the performance of the proposed layout.