A new policy to determine the waiting position of an idle Automated Guided Vehicle(AGV) is proposed and its performance is compared with the existing waiting position policies. Unlike the existing policies, the queue length in the input buffer is considered in the new policy. As a result, the waiting position based on the new policy depends on the status of the system. The simulation result indicates that the proposed policy reduces the waiting time in both the input and the output buffers significantly, regardless of the number of AGVs in the system. Therefore, the manufacturing lead time can be minimized.