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.