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In order to react to the continuous and unpredictable changes in product demand, in product variety, and in process technologies, reconfigurable manufacturing systems allow quick adjustment of production capacity and functionality by rearranging or changing their modular components. In this kind of system, operation management issues, such as exception handling policies, become more complex since correct reconfiguration strategies have to be selected. This paper explores the potential of the reconfigurability feature to be a basis for the development of new strategies to handle out-of-the-ordinary events in the production process; in particular, maintaining production flow when machine breakdowns occur. Decisions regarding how to deal with exceptions to the production process are complex and depend on the manufacturing system configuration and on many performance and economic variables. The …