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The Flexible Manufacturing Systems (FMSs) are highly advanced and integrated with manufacturing systems to produce products. It consists of two or more robots with machining cells and automated guided vehicles (AGVs) that will function under computer control. This paper highlights the importance of using loop layout and planning in FMS by decreasing the backtracking distance and distance traveled by Automated Guided Vehicle (AGV). A hybrid metaheuristic algorithm is used in this paper and it is called as Improved Scatter Search Algorithm (ISSA). The FMS Scheduling is a complex phenomenon due to the huge variability in the working parameters. Problems related to scheduling for general cases are characterized as NP-hard. From the given size of the problem, the computation time required to obtain the optimal schedule mostly will produce exponential results. In this research paper, the dispatching …