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All Journal Industrial and Systems Engineering Assessment Journal (INASEA) Jurnal Ilmiah Teknik Industri
Dinar Suryo Lesmono
Universitas Trisakti
Industrial & Manufacturing Engineering

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Journal : Industrial and Systems Engineering Assessment Journal (INASEA)

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BACKORDER RAW MATERIAL INVENTORY CONTROL SYSTEM WITH LEAD TIME AND ORDERING COST REDUCTION: CASE STUDY PT ICI PAINTS INDONESIA Amran, Tiena Gustina; Lesmono, Dinar Suryo
Industrial and Systems Engineering Assessment Journal (INASEA) Vol 12, No 2 (2011): INASEA Vol. 12 No. 2
Publisher : Industrial and Systems Engineering Assessment Journal (INASEA)

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Abstract

This research investigates the continuous review inventory model involving variable lead time with partial backorders, where the amount is uncertain. PT ICI Paints Indonesia is one of chemical industries which produced paint. The main problems faced by company are often occur stock out and also over stock of raw material replenishment, and the second case is raw material ordering lead time which can’t be controlled and determined its extent so the company more depend on the supplier policy. The purpose of this research is to suggest the optimal raw material inventory system alternatives synchronized with the stock out characteristics and the condition can be occurred. Besides, the backorder raw material inventory control can reduce lead time and raw material ordering cost. After the calculation, the optimal solution of inventory models can be obtained; those are with backorder condition which produced the annual inventory total cost amount of 15.069.845.628, 27 rupiahs; which mean it just effectively save inventory cost by 5, 81% for the company.
Co-Authors Tiena Gustina Amran