This study presents a mathematical optimization approach to improve the layout efficiency of a dairy products plant, addressing the empirical design issues in the current setup. Focusing on the Unequal-Area Facility Layout Problem (UA-FLP), the objective is to minimize material handling costs (MHC) while adhering to operational constraints. After proposing a mathematical model, it is used for optimizing the plant distribution for a dairy company. Given the company’s manageable size, the model was solved using exact methods, with a reasonable computational time. The proposed layout solution demonstrates a significant reduction in MHC compared to the existing layout, offering a clear path for improvement.