In an automotive plant, an automated storage and retrieval system (ASRS) synchronizes material handling flows from a part production line to an auto-assembly line. The part production line transfers parts on small-/large-sized pallets. The products on pallets are temporarily stored on the ASRS, and the ASRS retrieves the products upon request from the auto-assembly line. Each ASRS aisle is equipped with narrow-/wide-width racks for two pallet sizes. An ASRS aisle with narrow-/wide-width racks improves both storage space utilization and crane utilization while requiring delicate ASRS aisle design, i.e., the locations of the narrow-/wide-width racks in an ASRS aisle, and proper operation policies affect the ASRS performance over demand fluctuations. We focus on operation policies involving a common storage zone using wide-width racks for two pallet sizes and a storage-retrieval job-change for a crane based on assembly-line batch size. We model a discrete-event simulation model and conduct extensive experiments to evaluate operation policies. The simulation results address the best ASRS aisle design and suggest the most effective operation policies for the aisle design.