TODAY'S COMPETITIVE MANUFACTURING ENVIRONMENT CALLS FOR INCREASED AUTOMATION TO ACHIEVE PROFITABILITY. HOWEVER, LARGE FLEXIBLE MANUFACTURING SYSTEMS ARE PROHIBITIVE TO MANY MANUFACTURERS, PARTICULARLY SMALL AND MEDIUM-SIZE SHOPS, BECAUSE OF THE ASSOCIATED COSTS. BY THE SAME TOKEN, MANY MANUFACTURERS MUST FUNCTION UNDER JUST-IN-TIME (JIT) OPERATING CONDITIONS. AS AN ALTERNATIVE STRATEGY TO LARGE-SCALE FMS, MANUFACTURERS CAN FIND COST-EFFETIVE SOLUTIONS BY APPLYING SMALL-SCALE PALLET SHUTTLE SYSTEMS TO BOOST PROFITABILITY WITHIN INDIVIDUAL MACHINING CENTERS AND MANUFACTURING CELLS. PALLETIZING CAN IMPROVE MATERIAL HANDLING PROFITABILITY AND SAFEGUARD A MANUFACTURER FOR THE UNTOLD DEMANDS OF THE FUTURE.