A prescription drug storage and dispensing arrangement allows prescriptions stored, as they are filled, in a cabinet for customer pickup. The prescriptions are placed into receptacles such as pharmacy envelopes and placed on carriers, e.g., hanger bars, that are transported on a conveyor within the cabinet. The conveyor brings one carrier at a time to an access opening for loading or retrieving of a pharmacy envelope. In one embodiment the hanger bars are rods with spaced annular recesses defining bag positions. Scissors-action arms may be used to suspend the hanger rods from the conveyor webs. The identity of each pharmacy envelope and the location of the respective bar on said conveyor and the bag position are stored in a computer, with information identifying the customer order. When the customer arrives to pick up the prescription, the customer data is entered and the conveyor automatically moves to position the respective hanger bar at the access opening. A laser and mirror arrangement can be used to identify the specific bag location. This arrangement has applications for other customer orders or merchandise. Another embodiment has carrier trays for dispensing punch cards.