Storage system and methods

A shuttle and rack system comprising:

• a rack including a plurality of vertically stacked aisles, and a plurality of rows extending substantially perpendicular from each aisle, a loading position at an end of each aisle, a rack conveyor adjacent to each loading position and a lift adjacent to the loading positions having a conveyor thereon, storage locations being located along the rows for storing an item;
• a first cart movable along the aisle;
• a second cart configured to be carriable by the first cart and to be movable along a row, the second cart configured to carry the item between the first cart and the storage locations;
• and
• a conveyor located on the first cart to move the item onto the first cart at the loading position via the lift conveyor and rack conveyor, the conveyor being an endless loop conveyor, the rack conveyor sized so as to be able to hold at least one item thereon so that one of the lift conveyor and the first cart conveyor may operate independently along with the rack conveyor adjacent to the loading position to move items while the second cart is located in one of the rows.