This paper offers an analytical framework to evaluate the cost and potential economic benefits of industrial day care. The principal objectives of this analysis are to: define the inputs (goods and services) required to provide a given day care program; develop cost factors which can be used to estimate a range of costs for any particular type of day care; analyze the sensitivity of total costs to charges in program quality, size, and location; and reduce uncertainty among government, corporate, and private planners about the cost of adequate child care programs. The findings presented are based on a computer model, DAYCARE, which simulates the operation of a day care program and calculates the total cost under a wide range of assumptions. Two basic conclusions emerge. First, there is no one cost of day care; second, the cost of day care is highly sensitive to small changes in certain factors and relatively insensitive to changes in others. Included in the document are factors affecting day care costs, case studies, 10 computer outputs, day care program documentation, and the potential economic benefits of industrial day care. (BP)