Finite state automata are used as a modeling tool to derive and design a supervisory controller to coordinate and monitor collective and individual member functionality (behavior) of a mobile robot team, considering real-time robot sensor failures and repairs. The proposed supervisory control model is composed of a high level controller and a set of supervisory control modules. The high level controller activates the appropriate supervisor that redistributes task assignments to the robots in case of resource failures and repairs. The set of individual supervisory control modules (supervisors) all observe the activities of the robots and only the active supervisor provides control feedback to the robot team. The controller design accommodates flexibility in tasks assignment, robot cooperation, task prioritization and sequencing to accomplish a set of objectives. A team of mobile robots patrolling a warehouse is used as an example to demonstrate implementation aspects of the proposed supervisory controller.