<p>This paper examines an online integrated production and transportation scheduling problem in a make-to-order environment with time-dependent waiting and inventory holding costs. In this problem, the manufacturer has to produce the orders arriving over time and then deliver them to customers, resulting in production costs and transportation costs associated with the number of vehicles used. If orders are not immediately produced or transported upon arrival, waiting costs will be incurred during the interval between order receipt and transportation, along with inventory holding costs for storing products preceding their transportation will be incurred. The objective is to minimize the total cost of production, waiting, inventory holding, and transportation. We propose a primal–dual based heuristic algorithm with a competitive ratio of 3 and establish a lower bound of 2 on the competitiveness of any deterministic online algorithm for the problem. Furthermore, we investigate a general problem with considering both limited production capacity and fixed-plus-linear production cost structures.</p>