This paper discusses the application of SD to a case study of the detailed warehouse operations of a vertical manufacturer of mass clothing items. This approach has been used to study the relationships linking warehouse with inventory management and to understand the complex behaviour of a DC. In particular, the proposed case study suggests that a more flexible usage of human resources, outsourcing of selected warehouse operations (such as item count), and sourcing from reliable, yet more expensive, manufacturers may result in cost savings, reduced inventory, and shorter warehouse lead times.