Abstract: A method and system is provided for automatically controlling inventory. One or more point-of-sale businesses records sales and receipts for each item of inventory and transmits that information periodically (for example daily) to a database in a computer. This computer has software that acts as a “virtual buyer” in the sense that it implements set(s) of rules for the items and determines a target inventory for each item at each location. This information is then compared to each current inventory that is also kept current in a database. If the current inventory for that item at that location is less than the target inventory, then an order for more units of that item is generated to bring the current inventory up to the target inventory. Also, if the current inventory exceeds the target inventory for an item at one or more of the point-of-sale businesses, then instructions to return units of that item to the point-of-distribution may be generated.