Purpose – This study identifies the challenges encountered within inventory management practices. Furthermore, the study aims to provide improvement strategies to balance stock levels, reducing holding costs and reducing lead times. 

Method – To achieve the purpose of the study, a case study was carried out at a company in the furniture manufacturing industry. As methods for data collection, qualitative data was gathered through interviews, and an observation, while quantitative data was obtained from document analysis.

Findings – The research's findings raise challenges regarding demand forecasting, stock levels control, product variety, lead times, technology and production activities. Further, it provides improvements strategies assisted by Lean production, JIT, ABC-classification, Pull system and technology information tools, MRP and barcode scanner.  

Practical Implications – Since this study illustrates the shortcomings encountered in inventory management practices, companies in the manufacturing industries can use it as a comparison to evaluate and consider upon their own inventory management practices. 

Theoretical Implications – This study contributes to enriching existing literature in the field of inventory management practices for manufacturing companies. Moreover, it doesn’t add new theories to this field of research.

Limitations – A single case study was chosen for this research. One company in the manufacturing industry was investigated, alongside a restricted set of interviews. The aspects of supply chain considered in this study are the internal operations associated with inventory management.

Keywords – Inventory management, inventory challenges, inventory strategies, stock levels, Inventory management practices.