The content delivery network market is undergoing rapid growth as a broadband penetration develops and the demand for Internet delivery of high-quality media increases. To facilitate the planning phase of Video-on-Demand (VoD) networks, in collaboration with Nortel Networks, we developed the VoD Equipment Alocation Tool. We define, and propose a methodology to solve, the VoD Equipment Allocation Problem (VoD EAP) of determining the number (and model) of VoD servers to install at each potential location in a metropolitan area network topology such that the deployment costs are minimized and all demand is served. Verivue Inc. is a start up company currently investigating solutions of Video-on-Demand (VoD) servers. By applying our method and using our tool, they will acquire important knowledge about efficient design and can, subsequently, adapt their products to present more convincing and cost-effective solutions to interested service providers.