The generalized assignment problem (GAP) determines the maximum profit or minimum cost assignment of n jobs to m agents, which is a problem embedded in the cell formation problem. In this paper, a tabu search heuristic, TSDL that consists of dynamic tabu tenure with long-term memory mechanism is presented to solve the GAPs. A standard set of 84 test problems adopted from the literature is used to evaluate the performance of the proposed algorithm and for comparison with other existing methods. The TSDL can very efficiently find solutions with good quality. The proposed algorithm should thus be useful to practitioners and researchers.