The facility layout problem (FLP) involves the positioning of facilities within a given workplace in order to minimize the material flow distance between facilities. In this paper, we focus on the FLP in which the each facility has a rectangular shape and an input and output points. We develop a heuristic algorithm in which the facilities are arranged according to the layout algorithm using center of gravity and then simulated annealing algorithm is applied to improve the solution. A comparison of the computational results with exiting algorithms shows that the proposed algorithm provides better solutions in reasonable range of computational time.