Laser powder bed fusion (LPBF) is an additive manufacturing technology which uses a heat source (laser) to sinter or fuse atomized powder particles together. A new layer of powder is spread over the previous layer using a roller, and then the laser power fuses them. This mechanism is repeated until the part model is completed. To reduce the time, effort, and cost, the present study incorporated the design of an experimental approach conjoined with finite element analysis (FEA) to simulate the LPBF process. A three-dimensional (3D) bi-material model was subjected to FEA with variations in temporal and spatial material characteristics. A Gaussian moving heat source model for the multi-scanning of a single layer was developed to understand the effect of process parameters, namely laser power, scan speed, and scan pattern on melt pool dimensions. Although, similar simulation models have been reported in the literature, the majority of these did not consider parametric variations. A few studies adopted multiple parameters which varied simultaneously, but the major limitation of these studies was that most of them did not consider multiple characteristics under a constrained environment. In the present research, the multi-parameter multi-level simulation study was performed to understand the process mechanism with fewer simulations. Results showed that the studied dimensions were sensitive to parameter setting, and that temperature variation within the melt pool was dependant on the material phase in the vicinity of the melt pool. This research proposed that melt pool dimensions must be accurately controlled for optimum process performance to achieve proper overlap between the adjacent scan lines and sufficient depth to complete bonding with the bottom layer. Since the involved criteria were of a conflicting nature, the problem of determining a single factor setting to obtain the desired results was solved using grey relational analysis (GRA). It was found that, among all the considered process parameters, scan velocity was the most significant one. This research recommended a maximum scan velocity i.e., v = 1.5 m/s, with a minimum laser power i.e., P = 80 W. In addition, it was also suggested that low energy density be used to melt the powder layer properly.