Computer-based simulation techniques have been used extensively for solution of otherwise intractable problems in transportation and queueing situations. In other cases, optimum solutions can be approximated with relative ease and insight using simulation strategies compared with other analytic methods. Special modeling languages have been written to aid the engineer in building and operating the model, allowing complex systems to be simulated with relative ease.Techniques are now being developed to extend simulation methodologies to supplement conventional economic analysis of complex manufacturing systems. This paper describes a computer model constructed to simulate and examine the economic performance of a plant manufacturing four different styles of a composite product.The initial model as described is relatively unsophisticated but can easily be extended to include stochastic properties for input variables and multiple step operations. Strategic decisions for machinery design, level of automation and inventory strategy are facilitated with this simulation model. It can thus serve to study the implications of JIT decisions. Model outputs include net cost of production, economic profit, machine loading, machine utilization, inventory levels and outages, inventory carrying cost and profit margins. Sensitivity tests can be easily conducted at user-selected levels of input parameters.