An inventory handling system and a method for managing thereof, comprising multiple shelving units with shelves on which containers are placed. The system comprises a movable picking station configured to travel among the shelving units, and transfer items between containers. The movable picking station is configured to collect from the multiple shelving units into an order container at least a portion of a plurality of items listed in an order to be fulfilled. The movable picking station is configured to place the pickable items in the order container in an optimal arrangement while minimizing the distance the containers are moved and potential damage to the items.