Discharge produced plasma (DPP) devices are being used as a light source for Extreme Ultraviolet (EUV) Lithography. A key challenge for DPP is achieving sufficient brightness to support the throughput requirements of exposure tools for high-volume manufacturing lithography. An integrated model is being developed to simulate the environment of the EUV source and optimize the output of the source. The model describes the hydrodynamic and optical processes that occur in DPP devices. It takes into account plasma evolution and magnetohydrodynamic processes as well as detailed photon radiation transport. The total variation diminishing scheme in the Lax-Friedrich formulation for the description of magnetic compression and diffusion in a cylindrical geometry is used. Several models are being developed for opacity calculations: a collisional radiation equilibrium model, a self-consistent field model with Auger processes, and a non-stationary kinetic model. Radiation transport for both continuum and lines with detailed spectral profiles is taken into account. The developed models are being integrated into the HEIGHTS-EUV computer simulation package. Preliminary results of a numerical simulation of xenon gas hydrodynamics and EUV radiation output are presented for various plasma conditions.