This overview study examines the systems presently used at Purdue University to circulate library and audiovisual materials in the general library, the 28 departmental libraries, and the audiovisual center. Also examined are three basic approaches to the automation of library circulation systems, with examples drawn from systems already in operation. In addition, the impact of the emergence of consortia of libraries dedicated to cooperative processing of materials has been considered and incorporated into the design. The conclusion of the design team is that the on-line system at Ohio State University be adopted with minor modifications for use at Purdue. Of particular interest in a technical sense are the recommendations for use of a new technology, light pens reading bar-encoded labels, and the adaptation of an existing operational circulation system from another university. The proposed system will also have an impact on other future university applications because of the inclusion of the bar-encoded, machine readable label on the university passport usable for many purposes. (Author)