We study a problem of lot-sizing and sequencing several discrete products on a single machine. A sequence dependent setup time is required between the lots of different products. The machine is imperfect in the sense that it can produce defective items, and furthermore breakdown. The number of the defective items for each product is given as an integer valued non-decreasing function of the manufactured quantity for this product. The total machine breakdown time is given as a real valued non-decreasing function of the manufactured quantities of all the products. The objective is to minimize the total cost of the demand dissatisfaction, provided that a given upper bound on the completion time for the last item has been satisfied.