In this paper, We develop performance evaluation model for Twin fork Automated Storage/Retrieval systems. The system is modeled as a modified bulk service queueing system consisting of one exponential server with limited system capacity. The differance between this model and general bulk service queueing model is the inequality of transition service rate of each stage. The ejective of this model is to provide system characteristics for Twin fork AS/R system design problems, which are the number of customers in system, wait time in system and queue, the system queue size.