An object-oriented simulation modeling environment, AgvTalk, is presented to provide flexible modeling capabilities for simulation of many alternative AGV systems. The hierarchical features and modularity of AgvTalk create possibilities for the extension and reuse of simulation object components. Also, detailed behavior of each object in the AGV system can be modeled easily and exactly in AgvTalk because there are no limiting modeling constructs. The modeling capabilities of AgvTalk is demonstrated by designing and simulating a conceptually different configuration of AGV systems, known as, the tandem configuration. Between the tandem and conventional AGV systems, the characteristics and design methodology in AgvTalk are described. Also, simulations between two systems are compared with AgvTalk in the job shop environment.