There are substantial number of exact and heuristic solution methods propos
ed for solving the facilities location problems. This paper develops an alg
orithm to solve the capacitated, multi-commodity, multiperiod (dynamic), mu
lti-stage facility location problem. The literature on such composite facil
ity location problem is still sparse, The proposed algorithm consists of tw
o parts: in the first part branch and bound is used to generate a list of c
andidate solutions for each period and then dynamic programming is used to
find the optimal sequence of configurations over the multi-period planning
horizon. Bounds commonly known in the location literature as delta and omeg
a are used extensively to effectively reduce the total number of transshipm
ent subproblems needed to be solved. The proposed algorithm is particularly
effective when the facility reopening and closing costs are relatively sig
nificant in the multi-period problem. An example problem is included to ill
ustrate the proposed solution procedure.