Graphical level of detail (LOD) is a set of techniques for coping with the issue of limited computational resources by reducing the graphical detail of the scene far from the observer. Simulation LOD reduces quality of the simulation at the places unseen. Contrary to graphical LOD, simulation LOD has been almost unstudied. As a part of our on-going effort on a large virtual-storytelling game populated by tens of complex virtual humans, we have developed and implemented a set of simulation LOD algorithms for simplifying virtual space and behaviour of virtual humans. The main feature of our technique is that it allows for several degrees of detail, i.e. for
varying of simulation quality. In this paper, we summarise the main lessons learned, introduce the prototype implementation called IVE and discuss the possibility of scaling our technique to other applications featuring virtual humans.