Radio Frequency Data Communications (RFDC)technology is rapidly becoming a critical component of many traditional industrial engineering functions including materials tracking, inventory control, warehousing, order processing, shipping and database management. As a means of moving information, RFDC has many attractive features, such as speed, accuracy, reliability, convenience and low operating costs. When implementing RFDC systems a major problem is to quickly and efficiently determine the locations where transceivers should be placed so that effective radio communication can take place. The research described in this paper addresses this issue by developing a computerized layout simulation system that incorporates heuristic optimization methods to solve the placement problem. The effectiveness of this unique automated layout methodology is demonstrated by comparing it with the current method of utilizing manual site surveys, as well as with other placement methods. The methodology and solutions are validated by field-testing at actual facilities. © 2002, IIE.