A large scale automated material handling system (AMHS) is simulated using real industrial input data to analyze its performance so that one can scrutinize the critical factors that affect the AS /RS performance. The factors included in this study are line balancing efficiency, the distance between machines, and cycle time of the machines. The performance of AS /RS is measured in terms of R/M utilities that are latter used to classify the AS/RS structure into three types such as Good, Normal, and Poor. Among the three factors considered in this study, the line balance efficiency within each AS/RS is found as the most critical factor which statistically affect the AS/RS performance.