We consider the problem of scheduling customer orders on a single faci
lity where each order consists of several jobs that can be clustered i
nto several groups. When a facility is changed over to another group,
a setup time associated with the new group is required. Two particular
problems are considered in this context. One is to consider the total
setup time and the number of tardy orders jointly. The other is to co
nsider the total setup time and the maximum tardiness jointly. The tot
al setup time in both problems represents a measure of internal effici
ency, whereas the number of tardy orders and the maximum tardiness rep
resent a measure of external efficiency. In any shop, the decision mak
er must consider the tradeoffs between large setup costs associated wi
th a more frequent changeover schedule versus the cost of tardy orders
that might be induced by a less-frequent changeover schedule. In this
article branch-and-bound algorithms are proposed to identify the set
of nondominated schedules fur the two bicriteria problems. (C) 1996 Jo
hn Wiley & Sons, Inc.