Determination of the lot size using the Silver-Meal algorithm under the Constraint Theory / Case Study in Diyala Public Company

Abstract

The research aims at adapting lot size techniques, most notably the Silver-Meal algorithm in Iraqi companies. The study adopted the case study methodology to objectively determine the size of the optimal lot of each of the products of the electronic scales laboratory in Diyala Company and in light of the bottlenecks in the workstations or Constraint that limit the capacity. The results showed the ability to apply the theory of constraints by identifying the optimal mix that achieves the highest profit according to priority and its contribution to the treatment of the bottleneck by scheduling the production in light of the capacity available in each workstation per month. The results also showed the advantage of the Silver-Meal algorithm in determining the optimal size of the lot on the company method and the adoption of cost standards. Taking into account the recommendations of the research, which is the adoption of scientific methods in determining the size of the lot and the application of the theory of Constraint and layout of the laboratory and training employees to use these techniques to achieve the company the ability to reduce the cost and thus increase profits.