In this paper, we determine the required storage capacity of a unit-load automated storage/retrieval system(AS/RS) under random storage assignment(RAN) and n-class turnover-based storage assignment(CN) policies. For each of the storage policies, an analytic model to determine the optimal storage capacity of the AS/RS is formulated so that the total cost related to storage space and space shortage is minimized while satisfying a desired service level. A closed form of optimal solutions for the RAN policy is derived from the model. For the CN policy, an optimal storage capacity is shown to be determined by applying the existing iterative search algorithm developed for the full turnover-based storage(FULL) policy. Finally, an application of the approach to the standard economic-order-quantity inventory model is provided.