Inventory management techniques are tools used by organization encouraged to attain high supply chain. Thus, this study sought to establish the relationship between inventory management and supply chain. The main objective of this research was to determine inventory management and supply chain for Ethiopian automotive company; in addition, it also presented a model of supply chain and inventory control model implementation for the case company. The study discuses different concepts about inventory management and supply chain integration the methodology used by the research was descriptive type. In order to undertake this research sample sizes of 45 respondents were taken which represent the automotive sector. The primary data was collected using structured questionnaires and interview was also administered. The secondary data was gathered from different documents and journals. The objectives were analyzed by using descriptive statistics of mean and standard deviation, using regression and co relational analysis were utilized to identify the relationship between inventory management techniques and supply chain. The results were presented in tables, charts and models. The findings showed that, inventory management and supply chain system usually taken to avoid the problems with service deliveries, production loss, and economical ordering. This research goes through the process of analyzing the case company’s current and improved inventory control model to help them to solve their current issue while studying the current situation of the case company; it is found that nearly 44% nonmoving items are available in the stock. According to the recommendation of the research, this capital tied up can be reduced by the recommended supply chain model. The finding leads in recommending an Economic Order Quantity (EOQ) to help the sector reduce their product stock outs. In addition, a total cost estimate was done to compare both the current and the proposed models. It is found that the sector Company can be able to reduce their overall total cost from €34,165.60 to €20,368.13. This is an equivalent cost reduction of approximately 40%, which summed to a total saving of about €13,797.47 per year. Thus, the research recommends the importance of inventory management and supply chain integration practices that improve an organizational performance by reducing Production losses, good service delivery and reducing Capital tied up.