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This paper investigates the problem of designing cellular manufacturing systems with incorporating several design features including multi-period production planning, sequence of operations, alternate process routings, intra-cell layout, system reconfiguration, duplicate machines, machine capacity, lot splitting, and material flow between machines in a dynamic environment in which the product mix and part demands are varying during a multi-period planning horizon. The problem is formulated through a comprehensive integer linear programming model. The objective is to minimize the total costs of inter-cell material handling, forward and backward intra-cell material handling, machine operating, machine maintenance and overhead, cell reconfiguration, outsourcing and inventory holding. Computational results are presented by solving comprehensive example.