This proposed work is used to optimize costs of exceptional elements of machine cells for a variety of components in changing environment to have reduced material movements in cell layout. The exceptional elements are eliminated in the optimization model by doing machine duplication and part subcontract. Then the shop floor layout is designed to have optimized material movements between cells and within a cell. The result of a linear programming optimization model is cost savings, machines duplicated, parts subcontracted, inter intracellular movements. Finally, the output of inbound facility design is the floor layout which has machine cell clusters with optimized floor areas. The optimization model is provided with budgetary constraint for duplication and economic tradeoff between machine duplication and part subcontract. Cell layout is prepared to reveal the saving in floor area and material movement lengths than in process layout with the help of distance matrix and dimensions of cells.