The number of cotton gins in the state of Texas has declined from over 1400 gins in 1960 to less than 280 gins in 2006. Production in the state of Texas has remained relatively constant at 5 million bales except for the 2004/05 and the 2005/06 ginning seasons in which production was boosted to over 7 million bales. Two immediate problems come from the decline in the number of gins and the constant or increased annual production: (1.) Remaining gins must gin more seed cotton creating longer ginning seasons; and (2.) Seed cotton must be shipped greater distances in order to be ginned with corresponding increases in seed cotton transportation costs. Gin cost surveys from approximately 200 gins and multi-year economic data from over 10 cooperating gins in Texas have provided the base data for the development of decision support software. Preliminary results suggest that the optimum percent utilization for least cost (variable and fixed cost per bale) ginning increases with the ginning rate. It has been hypothesized that this optimum point in the cost-per-bale versus %U relationship will vary for gins processing stripper and picker cotton. Simulation (decision support software) was developed to test hypotheses and to develop recommendations to assist cotton gin managers with engineering and management issues.