Abstract: To improve the handling capacity of the double-station shuttle vehicle system for finished cigarette products, aided by Theory of Constraint (TOC), the system were optimized comprehensively from the placement of monitors, technical parameters, logistics technology, automatic control to computer dispatching, as following:1) Optimizing the technical parameters of shuttle vehicles and relevant interface equipment through in site experiments; 2) Changing the logistics operation flow in case of fire into fire alarming coordinated action; 3) Replacing the servo control with PLC control for the start/stop and acceleration/deceleration of shuttle vehicle; 4) Optimizing shuttle vehicle dispatching by mathematical model instead of FIFO strategy. The results of application showed that the handling capacity of the double-station shuttle vehicle system increased from 86.0 to 133.7 pallet/hour, which was higher than the rated demand capability of 118.6 pallet/hour. The improved system ran stably and efficiently.