This paper studies the scheduling/rescheduling problem in a multi-resource FMS environment. Several reactive scheduling policies are proposed to address the effects of machine breakdowns and processing time variations. Both off-line and on-line scheduling methods are tested under a variety of experimental conditions. The performance of the system is measured for mean tardiness and makespan criteria. The relationships between scheduling frequency and other scheduling factors are investigated. The results indicated that a periodic response with an appropriate period length would be sufficient to cope with interruptions. It was also observed that machine breakdowns have more significant impact on the system performance than processing time variations. In addition, dispatching rules were found to be more robust to interruptions than the optimum-seeking off-line scheduling algorithm. A comprehensive bibliography is also included in the paper.