diff --git a/core-java/pom.xml b/core-java/pom.xml
index 0c14da2245..f5a800d508 100644
--- a/core-java/pom.xml
+++ b/core-java/pom.xml
@@ -85,6 +85,12 @@
 			<artifactId>log4j-over-slf4j</artifactId>
 			<version>${org.slf4j.version}</version>
 		</dependency>
+		<dependency>
+			<groupId>org.projectlombok</groupId>
+			<artifactId>lombok</artifactId>
+			<version>1.16.12</version>
+			<scope>provided</scope>
+		</dependency>
 
 		<!-- test scoped -->
 
diff --git a/core-java/src/main/java/com/baeldung/algorithms/City.java b/core-java/src/main/java/com/baeldung/algorithms/City.java
new file mode 100644
index 0000000000..1a96dc759d
--- /dev/null
+++ b/core-java/src/main/java/com/baeldung/algorithms/City.java
@@ -0,0 +1,22 @@
+package com.baeldung.algorithms;
+
+import lombok.Data;
+
+@Data
+public class City {
+
+	private int x;
+	private int y;
+
+	public City() {
+		this.x = (int) (Math.random() * 500);
+		this.y = (int) (Math.random() * 500);
+	}
+
+	public double distanceToCity(City city) {
+		int x = Math.abs(getX() - city.getX());
+		int y = Math.abs(getY() - city.getY());
+		return Math.sqrt(Math.pow(x, 2) + Math.pow(y, 2));
+	}
+
+}
diff --git a/core-java/src/main/java/com/baeldung/algorithms/SimulatedAnnealing.java b/core-java/src/main/java/com/baeldung/algorithms/SimulatedAnnealing.java
new file mode 100644
index 0000000000..b62e861399
--- /dev/null
+++ b/core-java/src/main/java/com/baeldung/algorithms/SimulatedAnnealing.java
@@ -0,0 +1,41 @@
+package com.baeldung.algorithms;
+
+public class SimulatedAnnealing {
+
+	private static Travel travel = new Travel(10);
+	
+	public static double simulateAnnealing(double startingTemperature, int numberOfIterations, double coolingRate) {
+		System.out.println("Starting SA with temperature: " + startingTemperature + ", # of iterations: "
+				+ numberOfIterations + " and colling rate: " + coolingRate);
+		double t = startingTemperature;
+		travel.generateInitialTravel();
+		double bestDistance = travel.getDistance();
+		System.out.println("Initial distance of travel: " + bestDistance);
+		Travel bestSolution = travel;
+		Travel currentSolution = bestSolution;
+
+		for (int i = 0; i < numberOfIterations; i++) {
+			if (t > 0.1) {
+				currentSolution.swapCities();
+				double currentDistance = currentSolution.getDistance();
+				if (currentDistance == 0)
+					continue;
+				if (currentDistance < bestDistance) {
+					bestDistance = currentDistance;
+				} else if (Math.exp((currentDistance - bestDistance) / t) < Math.random()) {
+					currentSolution.revertSwap();
+				}
+				t *= coolingRate;
+			}
+			if (i % 100 == 0) {
+				System.out.println("Iteration #" + i);
+			}
+		}
+		return bestDistance;
+	}
+
+	public static void main(String[] args) {
+		System.out.println("Optimized distance for travel: " + simulateAnnealing(10, 10000, 0.9));
+	}
+
+}
diff --git a/core-java/src/main/java/com/baeldung/algorithms/Travel.java b/core-java/src/main/java/com/baeldung/algorithms/Travel.java
new file mode 100644
index 0000000000..9921b2516e
--- /dev/null
+++ b/core-java/src/main/java/com/baeldung/algorithms/Travel.java
@@ -0,0 +1,60 @@
+package com.baeldung.algorithms;
+
+import java.util.ArrayList;
+import java.util.Collections;
+
+import lombok.Data;
+
+@Data
+public class Travel {
+
+	private ArrayList<City> travel = new ArrayList<>();
+	private ArrayList<City> previousTravel = new ArrayList<>();
+
+	public Travel(int numberOfCities) {
+		for (int i = 0; i < numberOfCities; i++) {
+			travel.add(new City());
+		}
+	}
+
+	public void generateInitialTravel() {
+		if (travel.isEmpty())
+			new Travel(10);
+		Collections.shuffle(travel);
+	}
+
+	public void swapCities() {
+		int a = generateRandomIndex();
+		int b = generateRandomIndex();
+		previousTravel = travel;
+		travel.set(a, travel.get(b));
+	}
+
+	public void revertSwap() {
+		travel = previousTravel;
+	}
+
+	private int generateRandomIndex() {
+		return (int) (Math.random() * travel.size());
+	}
+
+	public City getCity(int index) {
+		return travel.get(index);
+	}
+
+	public int getDistance() {
+		int distance = 0;
+		for (int index = 0; index < travel.size(); index++) {
+			City starting = getCity(index);
+			City destination;
+			if (index + 1 < travel.size()) {
+				destination = getCity(index + 1);
+			} else {
+				destination = getCity(0);
+			}
+			distance += starting.distanceToCity(destination);
+		}
+		return distance;
+	}
+
+}