An important element in the successful operation of flexible manufacturing systems (FMS) is the management of the tooling component. This paper reports on one aspect of tool management for FMS operations. Four tool allocation and scheduling strategies are compared in the presence of three part selection rules through a simulation study of a five-machine FMS with an automated tool handling system. The tool allocation strategies are similar to those used in industry while the part selection rules are synthesized from the literature on FMS scheduling under tooling constraints. The use of different tooling strategies produces significantly different outcomes in FMS performance.