Systems can be classified in three ways: by complexity, interconnectivity of components, and nature of components. Physical systems have quantifiable variables while conceptual systems do not. Esoteric systems cannot be measured. Systems are independent if components do not affect each other, cascaded if effects are unilateral, or coupled if effects are mutual. Components can be static or dynamic, linear or nonlinear, deterministic or stochastic. There are 12 steps to simulation studies including problem formulation, model building, validation, experimentation, and reporting.