Warehouse operations are known to be complex and highly crucial for the success of importing and distribution companies. The cost of these operations plays a key to determine the profitability and competitiveness of their companies. The performance of these operations is measured by their cost and efficiency in satisfying the demand without delay. The purpose of this paper is to demonstrate a case of an importing furniture company in Saudi Arabia. Quality improvement tools were utilized including: fish bone diagram, Pareto analysis, check sheet, and flowchart. In addition, quantitative tools have been used to find the best location for a newly proposed centralized warehouse that compensate for multiple smaller current warehouse locations. The proposed centralized warehouse will have small distribution channels to satisfy the demand. The paper formulates the problem as a mathematical programing model that accommodates the costs of transportation and demerge charges of imported commodities. Three major cities have been considered to allocate the proposed warehouse. The cost of transportation, the demand and supply from each city have been estimated to build the model and applied in the program to find the best location. The model saves 27% from the average monthly profits.