AS/RS(Automated Storage/Retrieval Systems) has inflexibility in change after implementation and its initial cost is very high. Therefore, the proper and correct design of AS/RS is needed at the planning stage. Cost and performance are one of the most important factors in AS/RS design. There is a trade-off relationship between them. Velocity and number of stacker cranes have a deep relationship with performance of AS/RS. In this study, a model and a heuristic algorithm for finding optimal rack volumes and velocities of stacker for design of AS/RS are proposed with a numerical example.