This proposal is to conduct a comprehensive research effort on the analysis and design of production systems. The research will focus on the coordinated development of algorithms and mathematical models, general purpose computer modular software, a hardware simulator, and the integration of these elements into an overall design tool for production systems. Capacity, configuration, and operation-control design issues will be addressed by the design tool. The work will include complete algorithmic development documentation and a prototype implementation tested and validated on real data. Two universities will collaborate on this work. The product of this research will provide solid foundations for the subsequent commercial development of production-grade design tools suitable for direct industrial applications. This should result in increased productivity.