Abstract: The present invention relates to a material handling system using mobile cart which provides efficient storage and retrieval of payloads in a three-dimensional warehousing system and on multiple levels. In one embodiment, the mobile cart including a first frame comprising of eight wheels, the primary four wheels of the first frame are configured to move mobile cart in the ‘X’ direction motion, and the secondary wheels of the first frame which are pinion inbuilt wheels configured to move mobile cart in the ‘Z’ direction motion. Further, the mobile cart includes a second frame which is moveably attached to the first frame, the second frame including a gear motor, drive pulley, drive belt, four lead screw units, a plurality of sensors and tertiary four wheels, the tertiary four wheels are configured to move mobile cart in the ‘Y’ direction motion.