Simulation involves mathematically imitating real-world situations to study their properties and operating characteristics. The simulation process involves 11 steps: problem formulation, setting objectives, model conceptualization, data collection, model translation, verification, validation, experimental design, production runs and analysis, documentation, and implementation. Simulation offers advantages like flexibility to model complex systems, ability to study interactions of variables, perform "what if" analyses, and compress time without interfering with real systems. Simulation has applications in manufacturing, construction, military, logistics, transportation, education, business, healthcare, and networking.