This report discusses the major functions, decisions, and strategies of automated storage and retrieval systems (AR/RS). The report surveys the essential features of expert systems and discusses how they can be applied in automated warehousing environments. A blackboard expert system architecture was examined and found to be a flexible and responsive control system for automated warehousing applications. A simple AR/RS expert system was constructed using an expert system software package. A warehousing simulation was performed which compared the expert system’s performance to a typical AR/RS control system. The expert system produced increased efficiency of operation because of the intelligent rules programmed into the system.