This review paper describes the state-of-the-art research on flexible manufacturing systems (FMS) design and planning issues. The emphasis is on presenting research results coming out of the current FMS literature that help the FMS manager in setting up a highly efficient manufacturing system. In addition to that, it discusses relevant research contributions after 1986, that were not part of any of the previous survey papers on operations research models for FMSs. Also, applications of combinatorial optimization approaches to FMS planning problems are adequately exposed in the paper.