Yes. Like a war game. A standard way to prepare for contingency scenarios. Not all simulations are computer simulations ;)
It could potentially mean one of:
- Computer Simulation
- Pen & Paper Mathematical models
- Pen & Paper narrative modelling (i.e., writing a paper about different situations and the possible contingency plans - though granted this is not usually referred to as "simulation")
- Role-playing a situation via speech
- Acting out a situation with props and physical movement / simulated limited communication
- Sending out simulated broadcasts ("this is only a test")
- Sending out false but believable broadcasts
- Infecting the public with a (hopefully less harmful) disease in order to gauge response.