This thesis project features a design method of an automated warehouse in an insect rearing system, where pallets are transported from storage to a feeding machine and back into storage. From seven material handling equipment concepts, the most promising concepts are selected through a combined expert panel evaluation of 7 criteria and a basic design evaluation of four criteria. Inspired by the automated generation of design paradigm, a performance based parametric design approach is taken, where a parametric description of the warehouse lay-out is coupled to a pallet flow simulation. Iterative simulations are then performed until a lay-out design is obtained that provides the required handling capacity with minimal material handling equipment. Lay-out designs are generated for three operational scenarios with a shuttle and orbiter, and one scenario with an automated forklift.