A recently developed higher order theory for the thermoelastic respons
e of composite materials with microstructures characterized by arbitra
rily nonuniform reinforcement spacing in two directions (i.e., bidirec
tionally functionally graded materials) is further extended to accommo
date the effect of an inelastic response of the constituent phases. Th
is theory circumvents the problematic use of the standard micromechani
cal approach, based on the concept of a representative volume element,
commonly employed in the analysis of functionally graded composites b
y explicitly coupling the local (microstructural) and global (macrostr
uctural) responses. The theoretical framework is based on volumetric a
veraging of the various field quantities together with the imposition
of boundary and interfacial conditions in an average sense between the
subvolumes used to characterize the composite's functionally graded m
icrostructure. Examples are presented that illustrate how the presence
of plasticity and microstructure affect the free-edge interlaminar st
resses in metal matrix composites and how these stresses and plastic s
trains can be altered and managed through functionally graded architec
tures. Furthermore, the results demonstrate the inability of the stand
ard homogenization approach to capture accurately the microstructural
effects in the vicinity of the free edge.