A numerical simulation on the flow field was carried out on the cylindrical shell with baffles. The steady incompressible 3-D Navier-Stokes solution is obtained with the actual operational condition and geometry of the heat exchanger. The effect of the location of inlet and outlet on the cylindrical shell with baffle is investigated by varying flow rate. The angle between the location of In/Outlet and baffle cutting part is $0^{circ}$, $30^{circ}$, $60^{circ}$, $90^{circ}$, $120^{circ}$, $150^{circ}$ and $180^{circ}$. The present results show that the pressure drop is dependent on Reynolds number in the inlet area and position of inlet and outlet; i.e., the pressure drop increases with increasing Reynolds number and the pressure drop decreases with increasing angle between baffle cutting part and position of inlet and outlet.