JIT and Lean Manufacturing seek to do away with Warehouses, at least in principle. Naturally, as a concept they continue to come under severe scrutiny for their viability, the deleterious effects on the bottom line and even their very need in the modern and automated enterprise. As each industrial entity looks to increase production by expanding the number of assembly or production lines to cater to increased and varied demand of diverse products, availability of, sufficiency of and efficient utilization of space is of paramount importance for the bottom line. In that context, design of the warehouse must be flexible, yet robust so as to meet anticipated and unforeseen future needs without further material handling equipment or re-design of the Warehouse itself. Such a design should incorporate the major requisites of reduction of manual labor required and minimization of space required without compromising on the accessibility while keeping the capital and operating costs down. The expected outcome of such an optimized warehouse design is reduced dependence on or outsourcing to external warehouses.