This study is concerned with the economic analysis of implementing a material handling system using automated guided vehicle(AGV)s in order to improve the productivity of the production process of chinawares. Analytic hierarchy process(AHP) method for selecting the facilities of material handling systems is presented. Subsequently, as an example, a chinaware production line is analyzed for the economic analysis. The result shows that seven manpowers can be reduced. However the introduction of the new material handling system is turn out to be undesirable due to high initial cost of AGV system, Nevertheless, in the long term, automatic material handling system such as AGV system are expected to play major roles in the modern manufacturing area.