Storage space is an expensive "Resource." Timely planning, accurate estimation and efficient utilization of storage space for raw materials in manufacturing industry are both necessary and strategically important. Hitherto, warehouse planning has been treated as a separate function and performed in isolation, without accounting for its interactions with other manufacturing functions. Even the most sophisticated Manufacturing Resource Planning Systems (MRP II), have failed to identify and treat storage space as a resource. In this paper, a technique for incorporating Warehouse planning with an enhanced MRP II System shall be discussed. A sign)ficant improvement in stock turns and optimum storage space utilization are achieved with the proposed model. Appropriate assumptions are made and explicitly described. This technique has been tested and successfully implemented in a plant, manufacturing Infant Care Equipment.