The purpose of the research described in the report is twofold. First, it is to analyze the relative benefits and costs of on-line computerized placement systems. The techniques developed for such an analysis which might be useful in evaluating other manpower programs are presented. Second, it is to provide a prototype model which shows how Employment Service planners and managers could use simulation to better utilize human and machine resources in the placement activity. The demonstration is accomplished in two steps. First, the local office and the placement process are modeled, that is, the underlying dynamics of the system are described. Second, the model is used as the basis for computer simulation of placement-related Employment Service office activity. Recommendations for the use of the tool and for further development are also presented. An example of simulation output and a discussion of random number generation are appended. (Author)