Abstract: The production strategies of a remanufacturing system with reproduction and disposal are studied. In such a manufacturing system, the return product is disassembled into the treated waste, raw materials, or spare parts in a dismantling process. For the entire re-manufacturing system, two production policies are proposed. One is to produce until part inventory reaches its capacity, the other is to produce until part inventory reaches a critical stock point. By using Markov analysis, the two policies are evaluated. A numerical experiment is used to compares the two policies.