The automobile industry deals with many different types of components. 20% of the overall components are composed of rubber parts. The Indian rubber industry manufactures a wide range of rubber products such as of tyres, tubes, automobile parts etc. The rubber industry in India is basically divided into two sectors: tyre and non tyre sectors. In the non tyre sector automobile rubber parts have made a major contribution. These sectors comprise of small scale, medium scale and micro-scale units. Managing the inventory in these industries is a difficult task due to the absence of an inventory manager and enterprise resource planning. To overcome these issues, a simple inventory classification should be developed .Normally