One of the most effective programs used to optimize traffic signal timing is TRANSYT-7F. However, a major limitation of the program is its inability to select signal phase sequences. Hence, the possibility of introducing a phase sequence optimization capability to TRANSYT-7F using the Cauchy simulated annealing algorithm was investigated. The simulated annealing algorithm is implemented to optimize cycle length, phase sequences, and offsets simultaneously on the basis of the progression opportunities calculated by TRANSYT-7F. The results suggest that the algorithm has potential for optimizing signal phasing and timing for arterial streets as well as multiarterial networks.