Simulation technology can be utilized to assist many manufacturing enterprises to make decision in a high effect and concise way. The economic significance of logistics simulation for these profiled bar mills is undisputed in this context. The PSAO method, presented in this paper, introduced simulation into production optimization process and defined the elements of each step. Furthermore, basic requirements were summarized and then operation process was brought forward. Finally, the resultant prototype system for a local profiled bar mill was developed to address the issues of current productpsilas logistics simulation and optimization. In particular, production capacity was improved after the optimized solutionpsilas implementation.