A key element in the control of automated guided vehicle systems (AGVSs) is dispatching policy. This paper proposes a new dispatching algorithm for an efficient operation of AGVS. Based on an evolutionary operation, it has an adaptive control capability responding to changes of the system environment. It utilizes the information of work-in-process in buffers and travel times of AGVs. The performance of the algorithm is compared with some well-known dispatching rules in terms of the system throughput through simulation. Sensitivity analysis is carried out varying the buffer capacity and the number of AGVs. (C) 1999 Elsevier Science B.V. All rights reserved.