Carousels have been used in industries for many years. In addition to being one of the most efficient storage alternatives for order picking, they are also very economical. The purpose of this study is to help engineers in obtaining a storage carousel design that satisfies the storage requirements, space constraints and throughput requirements at the minimum cost. A three phase approach is used in the proposed design procedure. Phase I eliminates the alternatives not meeting the storage requirements and space limitations. In phase II, simulation is utilized to obtain the throughput of each feasible design realized in phase I. Hence, the alternatives which do not satisfy the throughput requirements can be eliminated at this step. Finally, the total cost of all the qualified alternatives from phase II are computed in phase III and the alternative with the minimum cost is recommended to the designers. A case study is also analysed to verify the proposed design procedure.