The objective of this research is the development of an optimization procedure to aid a warehouse planner in the design of selected three-dimensional, palletized storage systems. All alternatives are compared in the overall model while simultaneously considered the following factors: control procedures, handling equipment movement in an aisle, storage rules, alternative handling equipment, input and output patterns for product flow, storage rack structure, component costs and the economics of each storage system. The resultant model is more complete than any other currently available for use by a designer in this complex decision environment.