The demand for facility is changed dynamically for discrete and finite time periods. The holding cost for excess facility is needed for periods that the facility capacity is greater than the demand for the facility, and the usage cost of the outside facility for shortage facility is needed for periods that the demand for facility is greater than the facility capacity. This paper addresses to determine the facility capacity of minimizing the sum of the facility capacity cost, the holding cost of the excess facility and the usage cost of the outside facility. The problem is analyzed. The characteristics of the optimal solution are analyzed, and a algorithm is developed. A numerical example is shown to explain the problem.