In the area of production planning, the technology transfer from the developed world to developing countries should take into account the expensive machinery and economies of scale. In developed countries, equipment is cheap but manpower is expensive. Thus production planning models are built so that manpower is never idle. In developing countries the machines are much more expensive and maintenance plays a bigger role. Thus production planning models should be built which include the machine idle cost and maintenance costs. This paper explains how such models can be analytically developed. Finally, it is -shown that demand can be stimulated though economies of scale and inductrial goods can be provided at much cheaper rates.