Simulation involves modeling real-life situations and processes to analyze them or visualize outcomes. There are several types of simulations including static vs dynamic and deterministic vs stochastic. The simulation process involves defining the problem, collecting data, building a model, experimenting, and interpreting results. Simulation is widely used in fields like engineering, manufacturing, business, and government to study complex systems without having to create physical models. While simulation provides benefits like controlling variables and identifying issues, limitations include not guaranteeing optimal solutions and difficulty interpreting random outputs.