This paper presents a model for assessing different capacity scalability policies in Reconfigurable Manufacturing System (RMS) for different changing demand scenarios. The novelty of this approach is two fold: (1) it is the first attempt to explore different capacity scalability policies in RMS based on multiple performance measures, mainly scaling rate, Work In Process level, inventory level and backlog level; and (2) the dynamic scalability process in RMS is modeled for the first time using System Dynamics. Different policies for capacity scalability for various demand scenarios were assessed. Numerical simulation results obtained using the developed capacity scalability model showed that the best capacity scalability policy to be adopted...