Automated Guided Vehicles (AGVs) are robotic systems used to transport materials within warehouses or manufacturing plants without direct human input. They follow predefined paths using sensors, lasers, or magnetic strips, improving operational efficiency and reducing labor costs. In inventory optimization, AGVs help maintain a continuous flow of materials and products, supporting real-time inventory updates and reducing manual handling errors. AGVs are particularly beneficial in high-volume or high-throughput environments where speed and accuracy are critical to supply chain performance.