0) Let d _{m, p( j), j} denote the amount of demand from order m in period j to be satisfied by production in period p( j) in the current (possibly capacity-infeasible) plan. When reading in the problem data, all profitable order and production period combinations were determined. Based on the solution, we maintain a list of all orders that were satisfied, and this list is kept in non-decreasing order of per-unit profitability. Per-unit profitability is defined as follows: We will use this list to determine the least desirable production orders to maintain.

1) If no periods have planned production that exceeds capacity, go to Phase III. While there are still periods in which production exceeds capacity, find the next least profitable order period combination, ( m*, p( j*), j*), in the list.

2) If X _{p( j*)} > C _{p( j*)}, consider shifting or removing an amount equal to d* = min { d _m*, p( j*), j*, X _{p( j*)} C _p(j*)} from production in period p( j*) (otherwise, return to Step 1). If an earlier production period ? < p(j*) exists such that X _? < C _? then move an amount equal to min ( d*, C _?