The basis of simulation software is the process of imitation of a real phenomenon with a set of mathematical formulas. The software programs help in observing an operation through simulation without the actual performance of it. The software is used for designing an equipment so that there is a close resemblance of the final product and the design specs. Simulation software has applications not only in industries but also games.

Weather conditions, electronic circuits, chemical reactions, heat pumps, feedback control systems, atomic reactions, and biological processes can be simulated by the advanced computer programs used in simulation software. Any phenomena which can be reduced to mathematical data and equations, can be simulated.

Once the casual relationships are created by a theorist, a code can be made in the form of a computer program. When the program behaves in the same way as that of real process, then it can be said that the proportional relationships are correct.

Some general discrete simulations are used for model statistical events such as customers arriving at a bank. Optimal queue count can be determined by the correlation of arrival probabilities with observed behavior. Continuous simulation includes a variety of physical phenomena such as radio frequency data communication, ballistic trajectories, human respiration, steam turbine power generation and others. Mathematical models are used by the electronic simulation software for replicating the behavior of an actual electronic device or a circuit.

The processes that are simulated include those which involve change over time and randomness. Many process improvements can be made by the use of simulation software. The advantage of using simulation software is its repeatability where the circumstances can be repeated with different ideas which cannot be done really. The other advantages of use of simulation software are cost and time. The time and cost of experimenting a real process is very high which can be decreased by simulation.