This paper deals with short-term planning/scheduling problems when the product demands are driven by customer orders. This type of problem is, in general difficult to be solved, once the orders are subject to changes in short periods. In this paper is proposed a multi-level decomposition procedure, containing at least two levels. At the planning level, demands are adjusted, a raw material delivery plan is defined and a capacity analysis is performed. Therefore, time windows for each operation are defined. At the scheduling level, an MILP model is developed. In order to reduce scheduling problem dimension, it is performed an analysis of equipment contention profile, enabling to model only situations where a decision variable is requested. (C) 2000 Elsevier Science Ltd. All rights reserved.244192122472258