A flexible manufacturing system (FMS) comprises, automated machine tools, automated material handling, and an automated storage and retrieval system (AS/RS) as essential components. Optimal performance of each element of this system would improve the productivity and efficiency of the total FMS. In this context, this paper attempts to link the operation of the AS/RS with the production schedule and suggests two different classes of algorithms, namely, heuristics and genetic algorithms to improve the performance of the AS/RS operation by allocating the materials with minimum movement of the shuttle.