Within an interdisciplinary research project on “Advanced Manufacturing Engineering” we are currently developing a “Learning Factory” at University of Stuttgart. This project is one of our contributions to the European initiative “Manufuture”. So far the first version of the “Learning Factory” has been established. One of its core elements focuses on SD-based modelling. Here students can use simulators that deal with specific problems – like unanticipated side effects of programs for efficiency improvement – and allow them to conduct their own tests and policy experiments. The main purposes of our strategic modelling efforts are to better understand the dynamics of advanced manufacturing systems and to design policies for improving the performance of such systems. Special topics under investigation are: - Intra- and inter-supply chain dynamics and unintended cost effects; - Win-loose versus win-win partnerships in vertical relationships; - Co-evolution of transaction costs and competences caused by outsourcing/offshoring activities; - Adaptiveness of manufacturing systems (when designed as internal and external networks). By modelling and simulating the relationships among the different parts of investigated systems we may identify potential problems, avoid strategic pitfalls, and take steps to better design production systems and to improve their performance.