Re-manufacturing firms have a more complex shop structure to plan, control and manage (Guide and Srivastava, 1998; Guide et al., 1997b). This additional complexity is a function of stochastic product returns, dis-assembly operations, and highly variable material processing requirements. We discuss these and other factors in detail in the following sections. A typical re-manufacturing facility consists of three distinct sub-systems: dis-assembly, processing, and reassembly, all of which must be carefully coordinated (see Fig. 1). Dis-assembly is the first step in re-manufacturing operations and provides the parts and components for processing. Dis-assembly is also an important information gateway, as discussed in the following section. Re-manufacturing operations layouts are most commonly in a job-shop form because of the use of general-purpose equipment, and the need for flexibility (Nasr et al. 1998). Less than one-fifth (17.4%) of re-manufacturers report using specialized CNC equipment or manufacturing cells (Nasr et al., 1998). This may be, in part, from the diversity in products re-manufactured and the low production volumes. Nasr et al. (1998) suspect that the low level of technology is because of a lack of specialized production and control systems. Reassembly is the final stage in a re-manufacturing system. Because of the high variability of re-manufacturing processing times and the large number of options for parts (new, re-manufactured and substitutable), the task of scheduling is more complex and more likely to be done with simple rule-of-thumb techniques. Re-manufacturers may carry a variety of inventories: cores (products not yet re-manufactured), new parts, spare parts, finished goods, and WIP, and this variety requires continuous monitoring. Additionally, re-manufacturers may need to dispose of excess parts periodically, and this requires unique decision making tools.