This document, fifth in a series of 11 subvolumes of a handbook prepared to provide training for educational research and development personnel in the development of instructional materials, deals with the task of planning simulation based on instructional and logistical needs. The document content is arranged according to the sequential order of the two steps involved in performing the task. Step 1, assessing simulation needs, involves (a) determining whether simulation decisions should be made for an individual or for a series of lesson units; (b) inspecting task analysis diagrams and statements of objectives for the need to provide simulation; and (c) deciding whether to simulate. Step 2, planning the type of simulation to be used, involves: (a) identifying from task analysis diagrams and from mode analysis results key properties of inputs, actions, or outputs which require simulation and recording results; (b) planning and recording the simulation of inputs, actions, and outputs; and (c) selecting a simulation plan which both meets instructional needs and does not create an unacceptable logistical burden. (PD)