Ok, so I think I mis-interpreted the OP...it states:
To arrange my DVDs with precision I will take one DVD off the shelf and place it in the correct spot back on the shelf.
If that's the case, let's look at the example of 2, 4, 1, 3:
Start with 1...move it to its correct spot (and shift as needed): 1, 2, 4, 3...then try 2...it's already there...then 3, and move it...1, 2, 3, 4...you're done.
However, you can also do this by moving the 2 between 1 and 3 initially:
2, 4, 1, 3 --> 4, 1, 2, 3 --> 1, 2, 3, 4...
Which of the above is what you would expect from your OP? Either way, my numbers are not correct, and I need to change them...I will probably do that tomorrow and post my results.