In today’s market, ever-changing products and demands are major concerns for every manufacturer. Reconfigurable Manufacturing Systems (RMS) are so designed as to have customized flexibility and cost-effective reconfiguration whenever a design change in products/product families is needed. In RMS, the process plan is designed such that changes in demand or features etc. can easily be reflected without major loss in manufacturing time or cost. The costs usually included are machine usage, tool usage, machine change, tool change costs etc. All the parameters related to these costs become a part of the process plans. The focus of this research is to include material handling equipment such as transport and positioning equipment in the process plans and hence, to include their usage cost in the overall mathematical model. This will lead to a more accurate design of process plan particularly in terms of MHE related to each machine required to produce a part. The inclusion of MHE cost gives an idea about the impact of these equipment on overall cost of manufacturing. The presented model will help in the decision-making process of allocating part to machines & also allocating MHE to each machine considered in the process plan.