It is well known from queueing and simulation models that cycle times in capacitated production systems increase nonlinearly with resource utilization, which poses considerable difficulty for the conventional linear programming (LP) models used for this purpose. Hung and Leachman (1996) propose a highly intuitive iterative approach where a detailed simulation model of the production facility is used to estimate flow time parameters used in an LP model We examine the convergence of this method under different experimental conditions, and conclude that it is hard to determine precisely when the method converges.