The centralized warehouse concept as utilized by Montgomery County (Maryland) Public Schools is examined in this report detailing the operation of the warehouse facility and distribution system. After an executive summary, an addendum detailing comments by the staff of the Office of the Associate Superintendent for Supportive Services conflicting with specific recommendations of the report is presented. Chapter 1 focuses on warehousing and warehouse operations with findings on (1) functions of the warehouse, (2) characteristics of the current facility, (3) layout, (4) procedures, (5) housekeeping, (6) material handling equipment, (7) safety, and (8) security. Implications of the findings include current warehouse practices and future warehouse requirements and improvements. Recommendations conclude the chapter. The second chapter focuses on distribution of supplies and materials, with findings on (1) the division of supply and property management, (2) delivery of warehouse supplies, (3) use of helpers on delivery vans, (4) the Pony delivery, (5) distribution of food service supplies, (6) maintenance, and (7) pupil transportation. Implications of the findings include possible consolidations of various supply and food service deliveries. Recommendations conclude the chapter. Included in the report are 19 exhibits (charts, tables, and illustrations). (WTH)