This paper concerns a real-life production management problem composed of two stages, which includes interdependent batch scheduling problems. Moreover, both stages require setup operations at the beginning and between the subsequent batches. From the optimisation point of view, this production management problem is complying with customers’ deadlines and hence minimising total lateness. To achieve this objective, the production planner must identify optimum or near-optimum batch schedules for both stages. Correspondingly, this paper aims to develop a methodology to manage the related production problem as accurately as possible. We formulate an optimisation model that employs the mathematical programming method in line with this. Afterwards, an algorithmic proposal based on the simulated annealing algorithm is also developed to solve the problem in realistic sizes. The computational capabilities of the developed model and the algorithm are evaluated on the randomly generated problem sets. A direct comparison between the mathematical model and the algorithm shows how efficiently the proposed algorithm solves real-world problems. Also, computational results indicate that the proposed algorithm satisfactorily solves the related real-world batch scheduling problem.
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