Analysing of material flows within the boundaries of the production system it is possible to conclude that the sources and sinks of those material flows are storages. In those storages in the function of the kind and the type numerous processes are implemented. These storage processes along with the material handling processes are responsible for quantitative and dynamic balancing of material flows and as such have a significant impact on the total cost and productivity of the production system. Due to the above reasons, the design of storage is an important task which needs to be adequately accessed. Regardless of the kind and the type and the associated processes within storage one of the main activities in the design phase of storage is to define its location, with special emphasis on interaction with other elements of the production system (production and processing equipment, material handling equipment and devices, etc.). Namely, selection of the right location, among other things ensuring the necessary conditions which will make the process of storage to meet the technical and technological, economic, organizational, IT and other requirements upon it.