Competition in component market and short time to market the software components forces the organization to develop and launch the components in an iterative manner. Components are launched in various versions. All gathered requirements cannot be implemented in initial version. So requirements need to be prioritized and implemented in subsequent versions. Similarly defects in one version are taken care of in subsequent versions. In the present work we have proposed a simulation model that can be used to study the operational characteristics of the requirements implementation process and defect removal process in a Component Based Software.