In this paper, the simulation analysis of an automated material handling system (AMHS) for a photobay in a 300mm wafer fab was analyzed, considering the effects of the dispatching rules. Discrete-event simulation models were developed in an e-M Plant to study this system. Currently, the combination of the shortest distance with the nearest vehicle (SD_NV) and the first-encounter first-served (FEFS) dispatching rule was used in this system. In order to improve the system performance, a hybrid push/pull (PP) dispatching rule was proposed. The simulation results reveal a substantial improvement of the AMHS performance and reduced the WIP and cycle time as a consequence of implementing a PP dispatching rule.