DOS setup:

Create the ini file, you can remove the debug commands.
dos.ini:

! rm dos.log prte.txt pch.dck
set debug dos.log
;set mta debug=cmd;detail;exp
set cdr debug=cmd;detail;card
set cdp debug=cmd;detail;card
set inq debug=cmd;detail
set cpu debug=cmd;detail;exp;data
set da  debug=cmd;detail
set cpu 64k hist=500000 timer
set da0 type=2311
set da1 type=2311
;set mta0 9t
;at mta0 k360n-ma108a.tap
at lpr prte.txt
at cdp pch.dck
at da0 dos0.2311.130
at da1 dos1.2311.131
set mta0 7t
at mta0 -f p7b k360n-ma108a.bcd


Initialize the disks:
// JOB INTDSK INITIALIZE DISK PACKS
// DATE 69032
// ASSGN SYSOPT,X'130',D1
// ASSGN SYS002,X'131',D1
// ASSGN SYSLOG,X'01F',C1
// EXEC
// UID IR,C1
// VTOC STRTADR=(0199000),EXTENT=(9)
VOL1111111
// VTOC STRTADR=(0199000),EXTENT=(9)
VOL1111111
// END

Restore dos disks:
// JOB DISRST
// DATE 12004
// ASSGN SYS000,X'130',D1
// ASSGN SYSLST,X'00E',L1
// ASSGN SYSLOG,X'01F',C1
// EXEC


First job:
ADD X'00C',2540R
ADD X'00D',2540P
ADD X'00E',1403
ADD X'01F',1050A
ADD X'130',2311
ADD X'131',2311
ADD X'180',2400T7
ADD X'181',2400T9
SET DATE=02/01/69,CLOCK=00/00/00
ASSGN SYSLOG,X'01F'
LOG
ASSGN SYSRDR,X'00C'
ASSGN SYSIPT,X'00C'
ASSGN SYSPCH,X'00D'
ASSGN SYSLST,X'00E'
ASSGN SYS001,X'131'
ASSGN SYS002,X'131'
ASSGN SYS003,X'131'
// JOB DSERVSLB
// EXEC DSERV
 DSPLY ALL
/*
// EXEC SSERV
 DSPLY A.DOSCHLV
 DSPCH Z.ALL
/*
// PAUSE REMOVE CARDS FROM SYSPCH. 
/&


Log of setup:

IBM 360 simulator V4.0-0 Beta        git commit id: $Format:
Debug output to "dos.log"
Mem size=10000
LPR: creating new file
CDP: creating new file
CKD_P370
 10 4096 11 0
CKD_P370
 10 4096 11 0
sim> bo mta0
<^E after pause>
Simulation stopped, PC: 000000 (ff                      )
sim> at cdr initdos.job
CDR: unit is read only
sim> c
CONTROL CARD ANALYSIS AND LABEL CHECKING
R UTILITY MODIFIER CARD
R // UID IR,C1                                                                    
R 0130 
R 4444A
I 44
<^X after enter>
R 0131 
R 4444A
I 44
<^X after enter>
R SURFACE ANALYSIS AND HA-R0 GENERATION
R SYSOPT
R SYS002
R LAB CYL CREATION
R SYSOPT                        
R // VTOC STRTADR=(0199000),EXTENT=(9)                                            
R VOL1111111                                                                      
R SYS002                        
R // VTOC STRTADR=(0199000),EXTENT=(9)                                            
R VOL1111111                                                                      
R EO
HALT instruction, PC: 000A40 (50 20 00 90             ST 2, 90(0,0))
sim> bo mta0

<^E after pause>
Simulation stopped, PC: 000000 (ff                      )
sim> at cdr restdos.job
sim> c
R DISTRIBUTION PROGRAM
R RESTORE FUNCTION
R * DOS SYSTEM/360 RELEASE 26.2 SYSRES 2311 VOLUMES 1 & 2                         
R DOS.SYSRES.FILE.VOLUME.1                    
R THIS FILE FOR SYS000
R 4307A
I 22
<^X after enter>
R DOS.SYSRES.FILE.VOLUME.1                    
R 015331 RECORDS RESTORED FOR ABOVE FILE
R 3007 
R SWITCHING TO SYS000
R 4308A
I 22
<^X after enter>
R DOS.SYSRES.FILE.VOLUME.2                    
R THIS FILE FOR SYS000
R 4307A
I 22
<^X after enter>
R 4444A
I 44
<^X after enter>
R DOS.SYSRES.FILE.VOLUME.2                    
R 024425 RECORDS RESTORED FOR ABOVE FILE
R 3007 
R END OF JOB
R 3008 

HALT instruction, PC: 000D40 (50 20 00 90             ST 2, 90(0,0))
sim> quit