Consider the production of an evolving family of similar products, each having a well-defined life cycle. The fundamental production resources are inherently flexible, i.e., reconfigurable and reprogrammable. Two distinct strategies can be followed in configuring production facilities: (1) focused facilities, where a facility is dedicated to one product at a time, but may be reassigned; and (2) nonfocused facilities, where setup operations permit a variety of products to be produced during a given planning period. When focused facilities are used, which is a common strategy in some electronics companies, products must be assigned to specific facilities. If facilities are not identical, and capacity is limited, then changing production requirements may force reassignment of products from one facility to another. Thus, the product assignment/reassignment decision may have a significant impact on the production capacity required. This paper concentrates on the product assignment/reassignment decision when a pure focused facility strategy is used. This problem is analyzed and a number of insights are developed. Based on this analysis, the problem is reformulated and an optimal solution procedure based on a multi-commodity network flow model is presented and tested for the product assignment/reassignment decision