Emphasizes on the study of a finished goods warehouse of a transformer factory. Problems found due to the study of the warehouse operations were 1. The finished goods warehouse did not have an optimized method of physical storage and arrangement and 2. Orderpicking takes longtime and has errors. Thus the objective of this thesis is to improve the efficiency of warehouse management focusing on the storage and order-picking system by designing storage layout, location assignment system and work procedure according to the system which details are (1) Design storage layout : Determine the space planning and storage layout in order to utilize the space and handling equipment with maximum efficiency. ; Set a storage code system, stock locator, in order to reference storage location. (2) Assign storage location : Determine the pattern of movement which is the storage and retrieval system, product factors and space factors in order to assign the appropriate storage location. (3) Design and develop a program which help to design the storage location in order to arrange the goods in orderly convenient for orderpicking and inventory checking. (4) Set up work procedure : Prepare working procedure that suite with the location assignment system. The results of improving the efficiency of warehousing management are (1) Accuracy of information and operation : 1.87% increase in picking accuracy ; 1.11% reduction in inventory counting error. (2) Handling time : 43% reduction in picking time