Automated Guided Vehicle (AGV) systems have benefited numerous industrial warehouses in the transportation of components, parts, and raw materials. Although the AGV systems have offered great flexibility, the implementation of AGV systems imposes major challenges in the management of traffic between multiple ground vehicles inside the warehouse. An AGV traffic control system in conjunction with an anti-collision path planning algorithm presents efficiencies for transferring parts in the warehouse operations. This paper evaluates several path planning algorithms and traffic control algorithms that can be implemented with multiple ground vehicles. The application of the Dijkstra approach is proposed as the most efficient traffic control algorithm and path planning algorithm with the implementation of the anti-collision algorithm. The suggested algorithm is simulated using MATLAB software to check its rationality and performances under a real-life scenario and for comparison with the alternatives. The traffic control algorithm for multiple AGV systems has been performed in a dynamic environment and a time-based simulation and calculations have been used to optimize the velocity profile for each AGV. The finding from this paper presents timely and valuable insights into smart warehouses and logistics phenomenon, as a potential mechanism for optimizing material handling in warehouse management to be more efficient and collision-free through the use of modern technologies such as AGV systems and Industry 4.0 integration.