The basis of this Master Thesis was to examine how the monitoring of material inventory levels could be developed in a SME. The aim was to examine the company´s existing monitoring methods of material inventory levels with a help of various reports, and interviews and find out the fields that need to be improved. The main content of the Thesis was the theory of ABC analysis and the theories of different inventory control methods. These theories created the possibility to start developing the fields that need improvement in the monitoring of material inventory levels. The key result of this Thesis was the ABC-analysis from company´s articles and the service levels that were specified according to the analysis. Also all articles got their own inventory control method and all the required parameters that were determined according the result of ABC-analysis. With the help of these results, was the monitoring of material inventory levels easier.