Aero-engine component design decisions should consider re-manufacturing and/or repair strategies and their impact on lifecycle cost. Existing design approaches do not account for alternative production technologies such as the use of additive manufacturing in life extension processes. This paper presents a modeling and optimization methodology for examining the impact of design decisions in the early development stage on component lifecycle cost during the in-service phase while considering the potential use of additive manufacturing in life extension strategies. Specifically, a system dynamics model is developed to assess different end-of-life scenarios. Finally, an optimization problem is formulated and solved to minimize lifecycle cost with respect to design variables related to re-manufacturing.