An FMS environment requires a flexible and adaptable material handling system. Automated guided vehicles (AGV) provide such a system. One of the components of the network design consists of locating the Pick-up and Delivery (P/D) stations on the guidepath network. In this paper we present integer linear programming formulations to solve optimally the P/D station location problem and we discuss the quality of the bounds generated by the linear relaxations of the formulations. The models presented herein are easy to implement and allow solving problems of realistic size in manufacturing.