A fuzzy goal programming-based approach is used to solve a proposed multi-objective linear programming model and simultaneously handle two important problems in cellular manufacturing systems, viz. cell formation and layout design. Considerations of intra-cell layout, the intra-cell material handling can be calculated exactly. The advantages of the proposed model are considering machining cost, inter-cell, intra-cell (forward and backward) material handling, operation sequence and resource constraints on the capacity of machines. To illustrate applicability of the proposed model, an example is solved and computational results are noted.