A mathematical model for a dynamic capacitate facility location problem is formulated by a mixed integer problem. The objective of the model is to minimize total discounted costs that include fixed charges and distributed costs. The Cross Decomposition method of Van Roy is extended and applied to solve the dynamic capacitated facility location problem. The method unifies Benders Decomposition and Lagrangean relaxation into a single framework. It successively solves a transportation problem and a dynamic uncapacitated facility location problem as two subproblems. Computational results are compared with those of general mixed integer programming.