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The problem of simultaneous due-date setting and priority sequencing is analyzed in the setting of a multiclass M/G/1 queueing system. The objective is to minimize the weighted average due-date lead time (due-date minus arrival date) of jobs subject to a constraint on either the fraction of tardy jobs or the average job tardiness. Several parametric and nonparametric due-date setting policies are proposed that depend on the class of arriving job, the state of the queueing system at the time of the job's arrival, and the sequencing policy (the weighted shortest expected processing time rule) that is used. In a simulation experiment performed on a two-class M/M/1 system, these policies outperformed traditional due-date setting policies, and due-date setting had a larger impact on performance than priority sequencing.
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