In healthcare, the location and capacity of warehouses are crucial to ensure timely delivery of essential medical supplies, reduce transportation costs, and manage demand fluctuations. This project addresses the challenge of determining the optimal number, capacity, and locations of medical supplies warehouses in Muscat, Oman, considering real-world constraints such as transportation costs, warehouse costs, and fluctuating demand. Using a discrete location optimization model and CPLEX solver, we developed a cost-effective solution that balances proximity to healthcare facilities with logistical efficiency. The solution includes both rental and newly constructed warehouses in key locations like Ghala, Mabailah, and Khoudh. Sensitivity analyses demonstrated that demand variations significantly impact warehouse decisions and costs, highlighting the importance of accurate demand forecasting. Our proposed strategy enhances supply chain responsiveness and reduces costs, contributing to a more efficient healthcare system in the region.