Abstract: Deteriorating jobs scheduling problems have been widely studied recently. However, research on scheduling problems with deteriorating jobs has rarely considered explicit setup times. With the current emphasis on customer service and meeting the promised delivery dates, we consider a single-machine scheduling problem to minimize the number of late jobs with deteriorating jobs and setup times in this paper. We derive some dominance properties, a lower bound, and an initial upper bound by using a heuristic algorithm to speed up the search process of the branch-and-bound algorithm. Computational experiments show that the algorithm can solve instances up to 1000 jobs in a reasonable amount of time.