Abstract: A storage and distribution system wherein the product elements are segregated into product lanes, each product lane having a particular type of product element contained therein. The output ends of the product lanes are each provided with a release mechanism which is capable of dispensing the lead product element onto at least one main conveyor, while withholding all the rest of the product elements within the product lane. The product elements dispensed onto the main conveyors are then consolidated by a merge system, and directed onto an output conveyor which transports the consolidated order to a shipping, holding, or other suitable area. The system is also provided with means whereby the controlling system can monitor the successful completion of the product element releases, and the movement of the released product elements past the merge system, to thereby continuously monitor the progress of the dispensing sequence.