The generalized assignment problem (GAP), the 0–1 integer programming (IP) problem of assigning a set of n items to a set of m knapsacks, where each item must be assigned to exactly one knapsack and there are constraints on the availability of resources for item assignment, has been further generalized recently to include cases where items may be shared by a pair of adjacent knapsacks. This problem is termed the generalized assignment problem with special ordered sets of type 2 (GAPS2). For reasonably large values of m and n the NP-hard combinatorial problem GAPS2 becomes intractable for standard IP software, hence there is a need for the development of heuristic algorithms to solve such problems. It will be shown how a heuristic algorithm developed previously for the GAP problem can be modified and extended to solve GAPS2. Encouraging results, in terms of speed and accuracy, have been achieved.