This paper addresses an increasingly important aspect of product design and its relationship to life-cycle costing: disassembly for material recovery opportunities (MRO). MRO is defined as an opportunity to reclaim post-consumer products for recycling, remanufacturing and re-use. The authors have developed a methodology which can be used to identify and assess cost-effective characteristics of disassembly for the recovery of products. The central focus of this paper is aimed at improving the efficiency of the disassembly planning process and generating an optimal disassembly sequence. Four criteria are established to optimize the generation of the disassembly sequence: (1) material compatibility, (2) clustering for disposal, (3) concurrent disassembly operations, and (4( maximizing yield. In this paper we define the ‘disassemblability’ of a product as the ability to optimize the design and disassembly process for removal of specific pans or materials in a manner which will minimize costs. Steps have been taken to incorporate this methodology within a life-cycle analysis software tool (EDIT) to be used at the early concept stage of product design.