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Manufacturing scheduling and transportation mode selection decisions are the significant drivers for corporations within their supply chain network. Application of optimization and mathematical modeling approaches are almost always becomes the critical solution methodology for approaching joint manufacturing scheduling and transportation mode selection problems. Therefore in this paper, a mixed integer mathematical model is proposed for simultaneous optimization of manufacturing scheduling and transportation mode selection decisions in a cellular manufacturing environment. Product sequences are determined in each cell and then alternative transportation methods are identified while considering the capacity of chosen transportation mode for each smaller lot of every product to maximize the total profit.