Nowadays, so as to adapt to the global market, where competition is getting tougher, firms producing through the modern production approach need to bring not the only performance of the system designed both during the research and development phase and the production phase but also the performance of the product to be developed as well as the process to be improved to the highest level. The Taguchi method is an experimental design technique seeking to minimize the effect of uncontrollable factors, using orthogonal arrays. It can also be designed as a set of plans showing the way data are collected through experiments. Experiments are carried out using factors defined at different levels and a solution model generated in ARENA 3.0 program using SIMAN, which is a simulation language. Many experimental investigations reveal that the speed and capacity of automated-guided vehicle, the capacities of local depots, and the mean time between shipping from the main depot are the major influential parameters that affect the performance criteria of the storage system. For the evaluation of experiment results and effects of related factors, variance analysis and signal/noise ratio are used and the experiments are carried out in MINITAB15 according to Taguchi L16 scheme. The purpose of this study is to prove that experimental design is an utilizable method not only for product development and process improvement but it can also be used effectively in the design of material handling-transfer systems and performance optimization of automation technologies, which are to be integrated to the firms.