The main objective of this thesis was to quantify the propagation of uncertainty in a layered processing system as applied in Processing and Archiving Facilities (PAF). A framework is presented that is suited for the purpose. Practical uncertainty estimates are then obtained in estimating a reflectance product using three parameters: Column Water Vapour (CWV), Aerosol Optical Depth (AOD), and the adjacency range. We demonstrate the propagation of uncertainty from the reflectance product to application products, by focusing on unmixing i.e. retrieving materials and their proportional abundances present in each pixel. The thesis is divided into six chapters.