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Wireless indoor positioning systems have become very popular and attractive in recent years. With the increasing use of mobile computing devices such as PDAs, laptops and an expansion of Wireless Local Area Networks, there is growing interest in optimizing the WLAN infrastructure, so as to increase productivity and efficiency in various colleges and office campuses with carrying out a cost effective infrastructure model. This paper describes an indoor propagation model, which can be used to predict the signal strength taking into consideration propagation path losses. In this paper we describe a mathematical model developed to find the optimal number of APs and their locations. To solve the problem, we use the Particle Swarm optimization.