This paper addresses the dynamic m identical parallel machine scheduling problem in which the sequence dependent setup operations between the jobs are performed by a single server. An event driven rescheduling strategy based simulation optimization model is proposed by inspiration from limited order release procedure (Bergamaschi, Cigolini, Perona, & Portioli, 1997) for being able to tackle the changing environment of the system. The proposed event driven rescheduling strategy is based on the logic of controlling the level of the physical work-in-process on the shop floor. A simulated annealing and dispatching rules based complete rescheduling approaches as the simulation based optimization tools are proposed and adapted to the developed simulation model for generating new schedules depending on the proposed event driven rescheduling strategy. The objective of this study is to minimize the length of schedule (makespan). The performances of the approaches are compared on a hypothetical simulation case. The results of the extensive simulation study indicate that simulated annealing based complete rescheduling approach produces better scheduling performance. (C) 2015 Elsevier Ltd. All rights reserved.