Considerable investment in the installation of an automated manufactur
ing system requires scheduling approaches that highly utilize its reso
urces. The incorporation of alternative operations into a scheduling s
ystem increases the utilization rate of resources and reduces the make
span of manufacturing products. In the paper, a heuristic algorithm is
developed for a scheduling problem with and without alternative opera
tions. The effect of alternative operations on the performance of sche
dules generated are studied with five dispatching rules. The testing e
ffort involves 240 scheduling problems obtained for randomly generated
data. The computational results show that the most dissimilar resourc
es (MDR) dispatching rule for the case with alternative operations per
forms best among the dispatching rules tested. The quality of schedule
s (makespan, utilization rate of resources) generated with any dispatc
hing rule improves when alternative operations are used.