In this contribution, we consider a new, highly-dynamic hybrid pallet storage and retrieval system comprising a stacker-crane-based automated storage and retrieval system (AS/RS) and an autonomous vehicle storage and retrieval
system (AVS/RS). Firstly, we present the design and advantages of the considered system. We then propose control strategies for the connection and coordination of its components. Subsequently, we introduce how to model
the whole system in a discrete event simulation. In conclusion, we demonstrate the great advantages in terms of throughput and capability to respond to short-term fluctuations in demand created by the use of intermediate
buffering in the shuttle base of the new compact warehouse.