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Optimizing the trade-off between reliability and cost of operating a microgrid, including vehicles as both loads and sources, can be a challenge. Optimal energy management is crucial to develop strategies to improve the efficiency and reliability of microgrids, as well as new communication networks to support optimal and reliable operation. Prior approaches modeled the grid using MATLAB, but did not include the detailed physics of loads and sources, and therefore missed the transient effects that are present in real-time operation of a microgrid. This article discusses the implementation of a physics-based detailed microgrid model including a diesel generator, wind turbine, photovoltaic array, and utility. All elements are modeled as sources in Simulink. Various loads are also implemented including an asynchronous motor. We show how a central control algorithm optimizes the microgrid by trying to maximize reliability while reducing operational cost.