Ground water management models require the repeated solution of a simulation model to identify an optimal solution to the management problem. Limited precision in simulation model calculations can cause optimization algorithms to produce erroneous solutions. Experiments are conducted on a transient field application with a streamflow depletion control management formulation solved with a response matrix approach. The experiment consists of solving the management model with different levels of simulation model solution precision and comparing the differences in optimal solutions obtained. The precision of simulation model solutions is controlled by choice of solver and convergence parameter and is monitored by observing reported budget discrepancy. The difference in management model solutions results from errors in computation of response coefficients. Error in the largest response coefficients is found to have the most significant impact on the optimal solution. Methods for diagnosing the adequacy of precision when simulation models are used in a management model framework are proposed.