I understand that you want to build a Simulink Model which consists of an S-function that depends on external libraries. We cannot build a Simulink model which contains an unbuilt S-function and the error that you see is an expected behavior. However as per my understanding, you will need to build the S-function using the S-function builder on the machine which has all the required libraries and then deploy the Generated S-Function Block. More information about this can be found in the "Deploying the Generated S-Function" section on the following page:
Also, I believe that you want to create Wrapper S-function that inline a call to your algorithm, this would require the "s-function.tlc" file to be present while building your Simulink model. Make sure that you have the basic files mentioned on the following page required for the Implementation:
Once this is done, you can then build the entire model which includes the built S-function.
"Legacy Code Tool" can also be used as an alternative to S-Function Builder to build and deploy S-function and it is recommended. More information about Legacy Tool can be found here:
