This paper deals with the problem of how to assign planned lead times
for multi-operation jobs. The standpoint of the paper is that planned
lead times should be determined, based upon a management policy concer
ning a tradeoff between work-in-process quantities in a shop and capac
ity requirements variations on a bottleneck machine. A method of deter
mining a planned lead time for a multi-operation job is proposed, thro
ugh analyzing average loading times in a shop and capacity requirement
s variations on a bottleneck machine. The lead time is determined on t
he basis of the job's total operation time in a shop. Poisson job airi
val to a shop and periodic loading are assumed. The method is derived
with Lagrange's method of indeterminate coefficients. It can minimize
capacity requirements variations on a bottleneck machine under a given
average loading time in a shop.