AbstractScheduling the production of several items requires the determination of production quantities in different periods in the presence of resource constraints. Several approximate and heuristic algorithms have been proposed to solve this problem. However, no method for finding an optimal solution has as yet been developed. It is shown that the problem may be solved advantageously using Benders' decomposition. The subproblem in Benders' decomposition is shown to be a transportation problem, and some strategies for solving the master problem are indicated. The paper concludes with a sample problem demonstrating the application of the method.