Educational resources are scarce and should be used efficiently. To do this, decision-makers in higher education need clearly defined objectives, creatively elaborated alternatives, and information about the costs and effectiveness of those alternatives. This paper describes a new management tool which is designed to provide better information about the resource (cost implications) of alternative university plans and programs. This tool is a university system simulation model. At the University of Toronto, a system simulation model is now in the advanced stages of development and testing. This paper illustrates how this model will be used, sketches the model's structure, and discusses some problems of its design and operation. (RK)