A single-machine multi-product lot-sizing and sequencing problem is studied. In this problem, items of n different products are manufactured in lots. Demands for products as well as per item processing times are known. There are losses of productivity because of non perfect production. There is also a sequence dependent set-up time between lots of different products. Machine yields and product lead times are assumed to be known deterministic functions. The objective is to minimize the cost of the demand dissatisfaction provided that the total processing time does not exceed a given time limit. We propose two integer linear programming (ILP) models for the NP-hard "fraction defective" case of this problem and compare effectiveness of their ILOG CPLEX realizations with a dynamic programming algorithm in a computer experiment. We also show how an earlier developed fully polynomial time approximation scheme (FPTAS) and one of the ILP models can be extended for a more complex case.