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The integrated layout problem in manufacturing systems is investigated. An integrated model for concurrent layout design of cells and flow paths is formulated. A hybrid approach combined an enhanced branch-and-bound algorithm with a simulated annealing scheme is proposed to solve this problem. The integrated layout method is applied to re-layout the gear pump shop of a medium-size manufacturer of hydraulic pieces. Results show that the proposed layout method can concurrently provide good solutions of the cell layouts and the flow path layouts.