Abstract
SUMMARY This paper considers the scheduling problem faced by a manufacturer who is required to conform strictly to previously agreed due dates (or delivery dates), Penalties are assessed in the event that the product or service delivered is not yet complete. The model allows for a disruption cost each time a delivery is made. The objective is to minimize a total penalty function based on the announced due dates, the tardiness of each job and the number of distinct due dates used. The problem is solved by an efficient algorithm which simultaneously finds optimal solutions for the number of due dates to use, the specifications of those due dates and the order of processing for the jobs. A numerical example demonstrates the operation of the algorithm.
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