In order to solve the problems of long development cycle and huge rework adjustment in ammunition production in military industry, the workshop layout simulation and AGV path in manufacturing system are optimized. Taking a certain type of bullet component production line as the research object, the simulation model based on Plant Simulation is constructed. Parameterized configuration is carried out for machining center parameters, cache setting and AGV basic parameters, etc. 4 simulation schemes of material distribution are designed, and the optimal distribution scheme is determined by using AGV’s running track and sensors. The simulation results show that this research can greatly reduce the frequency of backtracking changes, and has a certain practical value.