Warehousing is a waste of time and money. Goods that are in store are idle goods and the longer they stay in storage the more they cost. The less warehousing, then, the better. A few companies have managed to organise a retailing operation without own warehousing by direct scheduling from manufacturer or supplier to the retail outlet. However, for the vast majority a warehouse is necessary in order to provide a buffer between supply and demand, to take advantage of bulk purchasing and to guarantee a service level to the customer on a reasonable number of products. Clearly, a warehouse should be scientifically sited and designed. It is at the hub of a distribution network and as such must be a highly efficient unit if it is not to wreck the entire system. In previous articles (RDM Jan/Feb and May/June 1974), the authors considered the overall distribution network including the determination of the number of warehouses and their siting. They now consider warehouse design and, more particularly, how this design should be matched to the throughput.