A new way of looking at scheduling and lot sizing is proposed by embedding material handling considerations in the determination of optimum delivery policies for a single stage, uniform demand assembly system in a finite horizon. Unit loads are used in place of lots; material handling and container costs are charged; and area and material handling constraints are imposed. A solution procedure based on a delivery period matrix is used to solve the minimization problem. Computational experience is provided. A special case of uniform delivery intervals is taken up and a discussion is given on variance penalty. / M.S.