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These studies focus on five end items representative of the population of brands manufactured at the company under consideration. The results of the study provide a methodological basis for system wide implementation of model based material ordering policy.","abstract_html":"A specialized lot size model for procurement of direct material items is applied in a specific manufacturing firm. Simulation studies are utilized for determining the effectiveness of the lot size model for use in a multiproduct MRP production system having a specific product structure. Measures of effectiveness with respect to cost categories including shortage frequency, material costs and holding costs will be obtained based on a range of demand patterns and levels. These studies focus on five end items representative of the population of brands manufactured at the company under consideration. 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