This paper presents an optimization strategy for the design and operation of a broke management system in a papermaking process. A stochastic model based on a two-state Markov process is presented for the broke system and a multiobjective and bi-level stochastic optimization model is developed featuring (i) a multiobjective operational subproblem for the optimization of the broke dosage and (ii) a multiobjective design problem formulation. An efficient optimization strategy is proposed for the operational subproblem along with a simulation based Pareto optimal solution for the design problem, and illustrated with a detailed case study. (C) 2011 Elsevier Ltd. All rights reserved.