The Silver – Meal Method of Determining the Volume Batch for Production / Purchasing

Abstract

AbstractThe present study of Silver-Meal heuristic lot size technique is to find the best quantity of purchasing, by minimizing holding and setup costs (ordering and carrying costs), and to explain that the silver-meal technique as a dynamic programming. Feeding the purchasing quantities into the MRP system (MRP1 and MRP2 systems) is easier and quicker in application and use compared to other lot sizes methods, such as the economic order quantity (E.O.Q) and the Wagner and Whitin approach. The Silver-Meal technique gives the same results as the theoretical Wagner and Whitin method when applied on Excel program (electronic spreadsheets) in order to calculate the quantity resulting from this technique and including it in the production schedule by the MRP system. The Silver-Meal method was applied on the Boys Clothing Factory which is part of the State Company of Readymade Clothes in Mosul and the current costs were compared with the costs after applying this method, whereby an abundance of costs was achieved upon using the Silver-Meal technique on the current situation in the researched factory. The abundance was represented by minimizing the setup and holding costs to the lowest possible degree in manufacturing and producing work overalls from polyester cloth, whereby the purchasing requests are forwarded from the manufacturing section through the commercial section