A method for determining locations and gain settings of amplifiers in an optical network is provided. The method comprises evaluating allowable amplifier locations, randomly generating sets of amplifier locations from the allowable amplifier locations, and applying genetic operations to the sets of amplifier locations until a predetermined exit condition is satisfied. This systematic method is applicable to a variety of network topologies and takes into account existing network limitations. In one embodiment, the method for determining the locations and gain settings of the amplifiers uses the amount of operating margin in the network to select sets of locations to be eliminated. In another embodiment, the method takes into account and determines the placement of dispersion compensation modules (DCMs), choices of which are provided by DCM placement procedures.