This paper proposes the concept of a new type of Cylindrical Automated Storage and Retrieval system (C-AS/RS), which consists of the octagonal shape rack, system input/output (I/O) positions, load storage and retrieval mechanism (SRM), which rotates and moves simultaneously and contains a number of load handling devices (LHDs). Physical structure of the single and multi-LHD systems, control algorithms and the performance measures were presented. Simulation modelling techniques, descriptive statistics and analysis of variance were used in this research to identify the effects of different location of I/O positions, the number of LHDs on the SRM and the retrieval request rates to the performance of the C-AS/RS system.