SIMPLE recovery model is, as the name implies, the most basic recovery model available in SQL Server. Every transaction is written to the transactional log file in this recovery model, and once the transaction is completed successfully, the data is written to the data file; SQL Server will automatically clear the space used by the transaction within the transaction log file for newer transactions.
Because transactional log space is reused and transactional log backup is not permitted, Point in Time recovery is not possible when the SIMPLE recovery model is used. As a result, you must rely on the most recent Full Database Backup and subsequent Differential backups to recover the database. As a result, this recovery model is best suited for user databases running in Development or Testing environments, or for a database configured as read-only.
During the following scenarios, SQL Server will automatically truncate the transactional log file in the Simple recovery model.
ALTER DATABASE AdventureWorksDW SET RECOVERY SIMPLE
GO

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