Vinod and Solberg (1985) address an optimization problem within the framework of a closed queueing network model for a Flexible Manufacturing System (FMS). The above problem is referred to as the Optimal System Configuration Problem of an FMS. The optimization parameters in the problem are the number of machines at each workstation and the total number of jobs circulating in the system. In this paper we suggest a more efficient algorithm for the solution of the above-mentioned problem. Our algorithm is of an implicit enumeration nature and derives its efficiency from the exploitation of properties of the throughput function of a closed queueing network. The efficiency of the algorithm is demonstrated with the use of extensive computational results.