Traditionally, the effectiveness of layout problems has been connected to the flow of materials. Material handling cost is commonly used to evaluate alternative layout designs. The relative location of facilities in a functional layout has been determined under the criterion of material handling cost minimisation. Usually, the material handling cost is assumed to be an incremental linear function of the distances between the components of the system under study. Total estimated annual material handling cost for a particular design is used to provide a quantitative measure of the flexibility of design. There is a massive amount of literature available about facility layout problem [1,8]. However, much of the research effort on facility layout has been concentrated on the static case. More recently, research has also focused on the dynamic case. The workof Rosenblatt [5] has generally been accepted as the first serious approach to model and solve DLP. He developed an optimal solution methodology for DLP using a dynamic programming approach. He defined the DLP with the following recursive relationship: