This paper presents a decomposition approach for a quite general class of mixed-integer dynamic optimization problems that is capable of guaranteeing a global solution despite the nonconvexities inherent to the dynamic optimization subproblems. A case study is presented in connection to the optimal subproblems. A case study is presented in connection to the optimal design and operation of a batch process consisting of a series reaction followed by a separation with no intermediate storage. The developed algorithms demonstrate efficiency and applicability in solving this problem.