Embodiments of the present invention relate to an inventory management method and system. The present invention addresses the foregoing need of an inventory management system through which all size and shape of components can tracked before and after an assembly process in a manufacturing facility. The invention address the challenges faced by store keeping clerks in locating the position of excess components returned from assembly floor, which are taken in excess but not being utilized during assembly process. Since basic spare parts which are smaller in size but taken in large quantity from store room due to their frequent usage, excess components needs to be kept back in store keeping units for effective inventory management.