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This paper introduces optimized operation of household appliances in a Demand-Side Management (DSM) based simulation tool. DSM can be defined as the implementation of policies and measures to control, regulate, and reduce energy consumption. The principal purpose of the simulation tool is to illustrate customer-driven DSM operation, and evaluate an estimate for home electricity consumption while minimizing the customer's cost. An optimization algorithm i.e. Binary Particle Swarm Optimization (BPSO) is used for optimizing the DSM operation of the tool. The tool also simulates the operation of household appliances as a Hybrid Renewable Energy System (HRES). The resource management technique is implemented using an optimization algorithm, i.e. Particle Swarm Optimization (PSO), which determines the distribution of energy obtained from various sources depending on the load. The validity of the tool is illustrated through an example case study for various household situations.