A model ia described which can be used to assist in the design of a facility, where the facilities design includes the selection of the materials handling system and the placement of departments within the facility. The model is entitled COFAD, an acronym representing Computerized FAcilities Design. COFAD selects the facilities design which approaches the minimal materials handling system cost. The input requirements and the utilization of COFAD are demonstrated via an example problem. Although it is shown that the model results in good solutions, due to the complexity of the design problem, no claim of optimality can be made.