This volume contains a collection of papers presented at the Second International Workshop on Knowledge-based Reactive Scheduling, organized by the International Federation for Information Processing and held in Hungary, Budapest in June 1994. Most of the papers in the book have been modified as a result of workshop discussions, and additional papers have also been included. The book reports a variety of advanced techniques and distributed problem-solving architectures for reactive scheduling. It encompasses state-of-the-art developments in Al-based reactive scheduling for real-time operation management in manufacturing shop floors. The papers in the volume reflect considerable on-going research, including learning approaches to increase problem-solving efficiency, knowledge acquisition, neural networks and case-based reasoning.