In this paper, a two-echelon production-inventory model is developed which integrates the production scheduling problem of the multi-products produced on a single facility and the inventory problem of the related raw materials. The setup costs of the final products are assumed to be dependent on the production sequence. The aim is to determine simultaneously the production cycle time and the production sequence of the final products, and the procurement cycle times of the raw materials. For the model developed, a solution algorithm is suggested and illustrated with a numerical example. And the result is compared with those obtained by two separate subproblems.