Cellular manufacturing system (CMS) is highly important in modern manufacturing methods. Given the ever increasing market competition in terms of time and cost of manufacturing, we need models to decrease the cost and time of manufacturing. In this study, CMS is considered in condition of dynamic demand in each period. The model is developed for facing dynamic demand that increases the cost of material flow. This model generates the cells and location facilities at the same time and it can move the machine (s) from one cell to another cell and can generate the new cells for each period. Cell formation is NP-Complete and when this problem is considered in dynamic condition, surly, it is strongly NP- Complete. In this study, genetic algorithm (GA) is used as a meta-heuristic algorithm for solving problems and evaluating the proposed algorithm, Branch and Bound (B & B) is used as a deterministic method for solving problems. Ultimately, the time and final solution of both algorithms are compared.