A method of planning and designing product sorting systems in warehousing is described. The theoretical background of the analytical models and simulation modelling is given. A calculation of the capacity of elements for joining and dividing for different priorities of material flow is described. New parameters are introduced in the formula for calculating the average number of unit loads in a system for joining, in the direction of the slave flow and for a simple analytical model for joining material flows with two different priorities with an exponential distribution of inter-arrival time. Simulation results are obtained using the GPSS/FON simulation language. Some characteristic results, used in the process of planning and design of two new distribution centres in Belgrade, are shown.