<![CDATA[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 canât 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.]]>
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