An "inventory free" approach for managing rental items across a plurality of distribution locations includes sending at least some rental items that are not needed by two or more distribution locations to a designated distribution location. Rental items sent to the designated distribution location may be permanently stored at the designated distribution location, returned to the distribution location from which they were sent, or sent to other distribution locations, depending upon where the rental items are needed. In situations where particular rental items are not currently needed by customers at a distribution location, but there is a high likelihood that the particular rental items will be needed by the customers within a specified time, the particular rental items may be maintained at the distribution location as "float" and not sent to the designated distribution location. The float is re-processed as returned rental items prior to being again rented to customers. The determination of whether customers need, or do not need, a particular rental item may be made based upon a wide variety of criteria such as time criteria, actual and predicted customer demand for rental items, actual and predicted returns of rental items, Net Ships and predicted loss and breakage of rental items.

 
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