A model has been developed with respect to hydrodynamic lubrication in cold rolling. The basic model describes the configuration of a rigid, perfectly plastic sheet rolled by a rigid work roll. The governing equations have been solved throughout the complete contact area, i.e. the inlet, the work zone and the outlet zone. Multi-level techniques have been applied to solve these equations together with boundary conditions, resulting in an algorithm solving the problem in O(n) operations. This means that the distribution of the pressure and the traction force in the lubricant film, and the shape of this film, as well as the plastic deformation of the sheet, can be accurately calculated for a large number of nodal points on a minicomputer. Subsequently elastic deformation, work hardening and dynamic behaviour of the flow stress have been incorporated in the model. It will be shown that the influence of these effects on the film thickness or the pressure distribution is considerable.