CRAFT (Computerized Relative Allocation of Facilities Technique) uses a pair wise exchange to develop a layout (Buffa et al., 1964; Hicks and Lowan, 1976). CRAFT does not examine all possible pair wise exchange before generating an improved layout. The input data includes dimensions of the building and facilities, flow of material or frequency of trips between facility pairs and cost per unit load per unit distance. The product of the flow (f) and distance (d) provides the cost of moving materials between two facilities. The cost reduction is then calculated based on the pre and Post Exchange material handling cost contribution. The input data for CRAFT is entered and the initial cost for the current layout is first calculated. This cost can be reduced using a pair wise comparison.