Uie aim of this thesis is to evaliuite the performance of transfer lines under pull environment. In this study, we have modelled a two-stage trcuisfer line separated by finite buffers by using Markov-Chcun representation. Experiments with different parameters were carried out to evaluate the different performance measures of the system. A two-stage simulation model was also constructed by using the package PromodelPC 2.0. Since two-stage models are limited to analyze most prcictical systems in manufacturing, we have extended it to an N-stage model. From the experiments performed for both two-stage and Nstage models, we hcive observed that we can decreci.se the in-process inventory substantially by just exchanging the positions of the nicichines in the system. Assembly-disassembly systems under pull environment have also been modelled by using simulation.