Safe scheduling: Setting due dates in single-machine problems

We consider single-machine stochastic scheduling models with due dates as decisions. In addition to showing how to satisfy given service-level requirements, we examine variations of a model in which the tightness of due-dates conflicts with the desire to minimize tardiness. We show that a general form of the trade-off includes the stochastic E/T model and gives rise to a challenging scheduling problem. We present heuristic solution methods based on static and dynamic sorting procedures. Our computational evidence identifies a static heuristic that routinely produces good solutions and a dynamic rule that is nearly always optimal. The dynamic sorting procedure is also asymptotically optimal, meaning that it can be recommended for problems of any size.