A material handling system has an automated storage and retrieval system (AS/RS) with vertically spaced levels storing articles. Each level has at least one pickup and deposit (P/D) station serviced by a shuttle and that is horizontally positioned to define a ramped orientation with a wave conveyor to move products selectively in at least one flow direction to each of the P/D stations. An article transfer mechanism at each P/D station respectively moves an article in a selected at least one direction between the wave conveyor and the respective P/D station. A controller selectively moves the selected articles onto the wave conveyor by respective article transfer mechanisms in coordination with movement of the wave conveyor to create a sequenced flow of selected articles. An order preparation system can receive the sequenced flow.