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Is there any option to save simplified representation as a seperate assembly ?
Yes, you can create an external simplified rep
1. Create your rep
2. In the view manager highlight the rep and right click, select Copy as External
3. Give it a name and save it
Yes, after giving it a name and saving it, I am unable to assemble the Ext Simplified Rep in another assembly. How to assemble the ext. simplified rep in another assembly?
I think that external simplified reps are not allowed to be assembled. They are designed as a (weak) work-around to distribute work among multiple people to deal with a single assembly.
If you need a dependent assembly, create a family table in the main assembly and place items in the table.