IBAM is a production chain simulator. IBAM simulates the flow of orders and products among the many suppliers and subcontractors that combine to produce an end item. The U.S. Department of Defense has used IBAM to analyze the erosion of its critical manufacturing base in an era of declining defense budgets and to identify potential bottlenecks in the event of renewed defense acquisition requirements. IBAM can also provide support for analyzing industrial competitiveness, planning regional economies, and building virtual manufacturing organizations. The model identifies key manufacturers, assesses labor needs, forecasts technology impacts and prioritizes policy options, all with little effort. The model benefits users by pinpointing potential bottlenecks and quantifying the relative costs and benefits of alternative solutions.