Warehouse inventory and layout optimization are critical to inventory and logistics management in organizations. In many instances, limited warehouse space is a constraint and a barrier to expanding operations and increasing demand. In this paper, I explore various econometric optimization models to improve inventory management and space utilization. I present various case studies to illustrate the applicability and use benefits. Additionally, I’ve applied one such econometric model to a sample inventory dataset from Saudi Aramco demonstrating its effectiveness in identifying opportunities for improving inventory management and space optimization.