(SA)The Simulated Annealing algorithm has five phases: (1) Initialization, (2) Perturbation, (3) Cost Calculation, (4) Acceptance and (5) Update. In Initialization phase of SA, the initial placement of ONU is obtained by greedy algorithm. In Perturbation phase SA relocates the ONUs with a small random amount. In Cost Calculation phase, the algorithm calculate the new cost of ONU placement and observed the new cost changes with respect to old cost. In Acceptance phase, if the new cost of ONU deployment is lower SA accept the relocation of ONUs else it remains with the old cost. In Update phase, SA iterates the same process until no further cost improvement occur. If no more perturbation will reduce the cost of deployment then algorithm is said to be in ‘equilibrium state’. From analysis, it conclude that greedy algorithm perform well at slightly higher cost than SA but at much lower processing requirement.