For the automotive industry, satisfying the specific demands of customers using differentiation strategies in product and service has become successful in increasing competitive global markets. Therefore, supply chain management and logistics capabilities play a key role in achieving competitive advantage. One of the key success factors for automotive companies is to have Tier 1 suppliers that have the logistic capability to provide the wide variety of components using Just in Time. The present paper focuses on a Storage Location Allocation Problem for a level 1 supplier company with a Just In Sequence production system. The problem is defined with linear programming formulation to find the optimal allocation of items at a minimum operating cost.