Most studies related to AS/RS are about operation policies or system designs. However, the studies on operation policy could not deal with various products using the single unit load system. In this paper, two different sized units are introduced and six different AS/RS operation policies are developed to process the different sized items. Computer simulation is used to evaluate AS/RS performances on various operation policies and to find the most effective operation policy for each case. The simulation model is developed using GPSS/PC and operation policies include COL-FIFO-SP, SIL-FIFO-SP, COL-RN-SP, COL-FIFO-LP, SIL-FIFO-LP and COL-RN-LP. The policies are evaluated based on the criteria of crane utilization, rack utilization, crane moving time, throughput and waiting time.