In this study, a goal programming model is proposed for the improvement of capacity utilization in a subcontracting small scale manufacturing company. This is a suburban Istanbul manufacturing company that produces certain final and intermediate products for a few large scale animal health companies. The company operates two production lines and produces different kinds of veterinary drugs and feed additives. Because this is a small scale company, it has the flexibility of reducing production costs as low as possible and also operating at a low profitability level. The utilization of production capacity is low. The company aims to increase profitability by increasing the production capacity to higher utilization levels. (C) 1999 Elsevier Science Ltd. All rights reserved.