An　increasing　number　of　companies　and　researchers　have　realized　the　value　of　quality　grading　in　the　remanufacturing　process.　In　this　research,　we　consider　a　lot　scheduling　problem　for　remanufacturing　with　returns　divided　into　different　quality　grades.　The　remanufacturing　rate　increases　as　the　quality　grade　increases　and　holding　costs　for　serviceable　products　are　higher　than　returns.　The　objective　is　to　minimize　the　average　total　cost　by　optimizing　the　acquisition　lot　size　and　scheduling　the　remanufacturing　sequence.　We　first　schedule　the　remanufacturing　sequence　for　an　independent　remanufacturing　system,　and　we　subsequently　extend　the　model　to　a　hybrid　manufacturing　and　remanufacturing　system.　It　is　demonstrated　that　the　given　models　can　be　applied　not　only　to　deterministic　situations,　where　the　proportion　of　each　quality　grade　is　constant,　but　also　to　stochastic　situations,　where　the　proportion　of　each　quality　grade　is　uncertain.　Finally,　we　confirm　the　value　of　the　scheduling　remanufacturing　sequence　and　analyse　the　sensitivity　of　the　relevant　parameters　through　numerical　examples.　The　results　show　that　the　benefit　of　scheduling　the　remanufacturing　sequence　is　to　take　advantage　of　the　low　holding　cost　for　storing　inexpensive　returns　and　postponing　the　remanufacturing　process　to　the　time　when　they　are　needed.　The　value　of　scheduling　a　(re)manufacturing　sequence　is　prominent　when　the　quality　and　production　rate　of　returns　are　scattered　and　the　difference　in　the　holding　cost　of　products　and　returns　is　relatively　large.　In　the　hybrid　manufacturing　and　remanufacturing　system,　the　greater　the　recovery　rate　is,　the　more　obvious　the　value　of　scheduling　is.　(C)　2017　Elsevier　Ltd.　All　rights　reserved.