Insertion based Lin-Kernighan heuristic for single row facility layout

The single row facility layout problem (SRFLP) is the problem of arranging facilities with given lengths on a line, while minimizing the weighted sum of the distances between all pairs of facilities. The problem is known to be NP-hard. In this paper, we present a neighborhood search heuristic called LK-INSERT which uses a Lin-Kernighan neighborhood structure built on insertion neighborhoods. To the best of our knowledge this is the first such heuristic for the SRFLP. Our computational experiments show that LK-INSERT is competitive for most instances, and it improves the best known solutions for several large sized benchmark SRFLP instances.