Arm-locking is a technique for stabilizing the frequency of a laser in an inter-spacecraft interferometer by using the spacecraft separation as the frequency reference. A candidate technique for future space-based gravitational wave detectors such as the Laser Interferometer Space Antenna (LISA), arm-locking has been extensive studied in this context through analytic models, time-domain simulations, and hardware-in-the-loop laboratory demonstrations. In this paper we show the Laser Ranging Instrument flying aboard the upcoming Gravity Recovery and Climate Experiment Follow-On (GRACE-FO) mission provides an appropriate platform for an on-orbit demonstration of the arm-locking technique. We describe an arm-locking controller design for the GRACE-FO system and a series of time-domain simulations that demonstrate its feasibility. We conclude that it is possible to achieve laser frequency noise suppression of roughly two orders of magnitude around a Fourier frequency of 1Hz with conservative margins on the system's stability. We further demonstrate that 'pulling' of the master laser frequency due to fluctuating Doppler shifts and lock acquisition transients is less than 100MHz over several GRACE-FO orbits. These findings motivate further study of the implementation of such a demonstration.