Stochastic modeling of dairy cattle populations using multiple ovulation and embryo transfer (MOET) was used to compare 15-year genetic responses with an artificial insemination (AI) program. MOET and AI techniques were simulated in four populations, two with 100 breeding females each and two with 400 breeding females. The selection goal was to maximize genetic progress in milk yield. The reduction in genetic variation due to inbreeding and linkage disequilibrium was accounted for in the simulation process. All four MOET breeding schemes studied achieved larger genetic responses than the realized and theoretical genetic gains from the current AI progeny testing populations. Strict restriction against inbred matings slowed genetic progress significantly in the small population but would not be consequential in the larger population. However, allowing inbred matings in the smaller population caused a rapid accumulation of inbreeding. Linkage disequilibrium was as important as inbreeding in reducing genetic variation. Genetic drift variance was much smaller in the larger population.