A traditional automated warehousing system often refers to applications of automatic storage and retrieval modules, lifting equipment and conveyor systems to stack, pick and transport incoming or outgoing items of a distribution centre. These facilities are used to overcome some disadvantages of manually operated warehouses which often lead to a high frequency of human errors, a consistent increase of labour costs and a poor efficiency of material-handling operations. In recent years, it has been seen an exponentially rising number of customers who like ordering products online and expect a fast delivery of ordered goods to be dispatched directly to their door steps. Because of this type of online shopping habit, many traditional stores (or warehouses) are no longer suitable for satisfying such a demand of online shopping customers. A study of literature review shows that future generation warehouses may be designed and implemented as more centralised distribution centres that partly replace conventional stores or warehouses of manufactures, suppliers and retailers in supply chain and logistics sectors [1]. This requires a novel design of a cost-effective mechanism of storage and retrieval systems as a key element of distribution centres for sorting, storing, picking and dispatching goods. Implementation and integration of fast-growing IT technologies have demonstrated great improvement opportunities of a warehouse in terms of a tighter inventory control, a shorter response time and a greater variety of SKUs (stock keeping units). These capabilities can be enhanced by using smart-labels such as radio frequency identification (RFID) tags, automatic identification (Auto-ID) sensors, wireless communication networks and indoor warehouse management systems (iWMS).