A method and apparatus for determining locations for and placing k caches in a network for optimizing performance of a network parameter. The method includes the steps of selecting a placement parameter l that is greater than 0, assigning l caches to l arbitrary nodes in the network. selecting l caches to remove from the network, assigning l+1 caches to every possible location in the network, computing and recording network performance data on the network cost parameter for each location and for each selection of l caches, determining a location where the network performance data on the network cost parameter computed and recorded is optimized, assigning l+1 caches to the determined location, and repeating the above steps of selecting l caches, assigning l+1 caches, computing and recording network performance, determining a location, and assigning l+1 caches for k-1 iterations.