ABSTRACT The rapid emergence and widespread adoption of next-generation information technologies have led to a growing recognition of the need for digitalized warehouse designs. However, creating a digital replica of a physical warehouse in a virtual environment is a complex task. This research introduces a framework for designing smart warehouses based on digital twins, consisting of four key steps: (1) defining the dimensions of the digital twin, (2) establishing a digital twin framework that encompasses the physical warehouse, digital twin, and design processes, (3) implementing modularization techniques for the digital twin, and (4) operating the smart warehouse based on the digital twin. To validate the proposed framework, we present a detailed case study involving a semiconductor manufacturing plant. The results demonstrate the effectiveness of the digital twin-based smart warehouse design and its operational processes.