Inventory Management with Zero Inventory Concept in an Automobile Shop

The aim of this paper is to reduce the inventory in an automobile shop. Zero Inventory concept is a cost-effective philosophy. Zero inventory concept originally came from Toyota. It has certainly brought a huge success to Toyota. An automobile shop in which no or very little inventory in storage, simply ordering exactly what it needs to sell and receiving it in a timely manner is known as the zero inventory based system. Zero Inventory is the goal of JIT (Just-In-Time) inventory management in an automobile shop. When we use Zero Inventory concept in an automobile shop then various costs are reduced like, inventory carrying cost, inventory handling cost, infrastructure & maintenance cost, safety and security cost etc. Zero Inventory concept in any organization improves the Economic Order Quantity (EOQ) and reduce the total optimum cost and total optimum time. Zero Inventory focuses on the process not on product. The conclusion of this research indicates that Zero Inventory system is successful in an automobile shop and operating Zero Inventory system leads to many advantages to an automobile shop.