<p style='text-indent:20px;'>Market-oriented production systems generally have the characteristics of multi-product and small-batch production. Dynamic virtual cellular manufacturing systems create virtual manufacturing cells periodically in a planning horizon to respond to changing demands flexibly and quickly, and thus are suitable for production planning problems of market-oriented production systems. In the current research, we propose a dynamic virtual cell reconfiguration framework under a dynamic environment with unstable demands and multiple planning cycles. In this framework, we formulate a two-phase dynamic virtual cell formation (DVCF) model. In the first phase, the proposed model aims to maximize processing similarity and balance the workload in the system. In the second phase, we consider the objective of reconfiguration stability based on the first phase model. To address the proposed model, we design a hybrid metaheuristic named Lévy-NSGA-Ⅱ, and perform various computational experiments to examine the performance of the proposed algorithm. Results of experiments indicate that the proposed Lévy-NSGA-Ⅱ based algorithm outperforms multi-objective cuckoo search (MOCS) and NSGA-Ⅱ in solution quality and optimal solution size.</p>