Abstract. Inventory management is critical to running any business, especially in auto supply businesses, where maintaining an optimal stock level directly impacts profitability and customer satisfaction. Inventory management involves tracking, ordering, storing, and selling a company’s stock. In the context of auto supply businesses, effective inventory management ensures that essential parts and products are available when needed while avoiding the high costs associated with excess inventory or stockouts. This study aimed to analyze the inventory management practices of auto supply businesses in Candelaria, Quezon, surveying nine (9) business owners/managers. While the sample size might seem small, it represents a significant portion of the local industry and provides valuable information for the research study. The study identified barriers such as “compliance-related expenses” like obtaining permits, licenses, and certifications from the local government units and “inventory fluctuations,” which hindered effective inventory management. Moreover, the recommendation to adopt a “just-in-time” (JIT) inventory system is insightful, for it can help reduce costs by minimizing the amount of inventory held at any given time, lowering storage costs, and reducing the risk of overstocking. This approach ensures that businesses only order inventory as needed, improving cash flow and preventing excess inventory from becoming obsolete or taking up valuable space.

Keywords: Cost barriers; Ordering decisions; Minimizing inventory levels; Eliminating costs.