This paper is concerned about the hybrid tandem configuration as the design of the automated guided vehicle system(AGVs). The hybrid tandem configuration is that the manufacturing system is divided into several non-overlapping zones, workstations of each zone are linked by network configuration including loop. That is, the manufacturing system is divided into several non-overlapping small size networks, and at most two automated guided vehicles can be available in each network. The transit point is located at proper point between adjacent networks. The parts are transported to workstations in other network through the transit points. One of the objective functions in dividing into the hybrid tandem configuration is to minimize the maximum travel time of the divided networks, and other is to minimize the total travel distance of parts moved to workstations in other networks for the next processing. The model formulation is presented, and a numerical example is shown. Also, the performances of system for the hybrid tandem, tandem and network configuration are compared through the simulation. The results of this research will contribute to the development of material handling systems in the manufacturing system. Also, it will be applied in determining the transportation area of transportation vehicles and the number and size of the transportation fleet in the transportation problem of logistics management.