In a factory with different kinds of spatial atmosphere (warehouses, corridors, small or large workshops with varying sizes of obstacles and distribution patterns), the robot’s generated paths for navigation tasks mainly depend on the representation of that environment. Hence, finding the best representation for each particular environment is necessary to forge a compromise between length, safety, and complexity of path planning. This paper aims to scrutinize the impact of environment model representation on the performance of an automated guided vehicle (AGV). To do so, a multi-objective cost function, considering the length of the path, its complexity, and minimum distance to obstacles, is defined for a perfect circular robot. Unlike other similar studies, three types of representation, namely quadrangle, irregular triangle, and varying-size irregular triangle, are then utilized to model the environment while applying an inflation layer to the discretized view. Finally, a navigation scenario is tested for different cell decomposition methods and an inflation layer size. The obtained results indicate that a nearly constant coarse size triangular mesh is a good candidate for a fixed-size robot in a non-changing environment. Moreover, the varying size of the triangular mesh and grid cell representations are better choices for factories with changing plans and multi-robot sizes due to the effect of the inflation layer. Based on the definition of a metric, which is a criterion for quantifying the performance of path planning on a representation type, constant or variable size triangle shapes are the only and best candidate for discretization in about 59% of industrial environments. In other cases, both cell types, the square and the triangle, can together be the best representation.