The carousel storage system is an automated warehousing system which h
as been widely used in a broad range of applications. This paper exami
nes the effects of storage assignment policy on the throughput perform
ance of the carousel system in which a storage/retrieval machine perfo
rms pickup/discharge operations. For 2-class-based storage assignment
policy, the expected cycle time models are developed for single and du
al command cycles. It is shown that with 2-class-based storage assignm
ent policy significant reductions in cycle time are obtainable over ra
ndomized storage assignment policy. The effects of the system paramete
rs such as the skewness of the inventory distribution, the shape facto
r and the pickup/discharge time are studied on the optimal boundary.