This experiment aimed to optimize the location of shortcut so as to increase the throughput and improve the performance of the unidirectional circulation-type material handling system. This paper made a mathematical model of this system, analyzed the locations of short-cut layout and then carried out the simulation experiments of the relation between the short-cut setting and throughput under the condition of two different scheduling rules. The throughput per unit time was different under the conditions of different scheduling rules and different number of vehicles with shortcut set in different places. According to the analysis, when the shortcut was set between Sx and Sx + 1, the maximum throughput can be achieved and the system efficiency became optimal. The optimal location of shortcut can not only increase the throughput per unit time but also improve the performance of the system. The experimental results confirmed the validity of the theoretical analysis.