Abstract: A warehouse product monitoring and control system includes a distribution audit system computer which receives batch picking information on a recording medium identifying each transaction or article to be picked with a unique number. Associated with each unique number is processing information for controlling the sorting of the article within the system. The same number, unique for each article, is contained on a label positioned on each article as it is picked. The computer control provides continuous monitoring of the article as it is scanned by one or more label reading devices such that the picking and sorting status of each article to be picked can be continuously monitored. The system includes operator interface terminals and printers for providing a variety of status reports to the operating personnel such that the operational status of the system can be continuously monitored.