The hill climbing algorithm is a local search method that seeks optimal solutions by moving towards higher values until a peak is reached, making it useful for optimization problems like the traveling-salesman problem. Variants include simple hill climbing, steepest-ascent, and stochastic hill climbing, each with distinct characteristics and challenges such as getting stuck in local maxima or plateaus. Simulated annealing is proposed as a more effective alternative that uses random moves to escape local maxima, akin to the physical process of annealing in metallurgy.