The sequential manufacturing process has been widely applied to the making of complicated integrated circuits (IC). The basic idea is to break an IC product line into a linear sequence of simple operations, and then, a final product with desired high complexity can be obtained by performing the individual operations step by step. To assure the quality of the in-process products, we may conduct a test after each operation. When an in-process product is fault-free, it will pass the test and be moved to the next operation. On the other hand, for a defective in-process product which fails the test, we have to make a decision to either scrap or repair it so that no fault propagates to later operations. The repair/scrapping decisions certainly affect the manufacturing cost. Our goal is to find a set of optimal repair decisions so that the total manufacturing cost per fault-free IC product is minimized. For an IC product line with n sequential operations, there are 2npossible decision combinations in total. In this paper, we introduce a dynamic programming approach with an algorithm of 0(n2) complexity to solve the problem.