diff --git a/bareon_dynamic_allocator/allocators.py b/bareon_dynamic_allocator/allocators.py
new file mode 100644
index 0000000..cddbf3b
--- /dev/null
+++ b/bareon_dynamic_allocator/allocators.py
@@ -0,0 +1,170 @@
+#    Copyright 2015 Mirantis, Inc.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See then
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+import six
+
+from scipy.optimize import linprog
+from scipy.ndimage.interpolation import shift
+
+import numpy as np
+from numpy import array
+from numpy import zeros
+from numpy import append
+from numpy import vstack
+from numpy import concatenate
+from numpy import put
+from numpy import roll
+
+
+def shift(arr, steps, val=0):
+    res_arr = roll(arr, steps)
+    put(res_arr, range(steps), val)
+
+    return res_arr
+
+
+class Disk(object):
+
+    def __init__(self, **kwargs):
+        for k, v in six.iteritems(kwargs):
+            setattr(self, k, v)
+
+
+class Space(object):
+
+    def __init__(self, **kwargs):
+        for k, v in six.iteritems(kwargs):
+            setattr(self, k, v)
+
+
+class DynamicAllocator(object):
+
+    def __init__(self, hw_info, schema):
+        self.disks = [Disk(**disk) for disk in  hw_info['disks']]
+        self.spaces = [Space(**space) for space in schema]
+
+        # Add fake volume Unallocated, in order to be able
+        # to have only volumes with minimal size, without
+        # additional space allocation
+        self.lp = DynamicAllocationLinearProgram(self.disks, self.spaces)
+
+    def generate_static(self):
+        sizes = self.lp.solve()
+
+        return sizes
+
+
+class DynamicAllocationLinearProgram(object):
+    """Use Linear Programming method [0] (the method itself has nothing to do
+    with computer-programming) in order to formulate and solve the problem
+    of spaces allocation on disks, with the best outcome.
+
+    In this implementation scipy is being used since it already implements
+    simplex algorithm to find the best feasible solution.
+
+    [0] https://en.wikipedia.org/wiki/Linear_programming
+    [1] http://docs.scipy.org/doc/scipy-0.16.0/reference/generated
+                             /scipy.optimize.linprog.html
+    [2] https://en.wikipedia.org/wiki/Simplex_algorithm
+    """
+
+    def __init__(self, disks, spaces):
+        # Coefficients of the linear objective minimization function.
+        # During iteration over vertexes the function is used to identify
+        # if current solution (vertex) satisfies the equation more, than
+        # previous one.
+        # Example of equation: c[0]*x1 + c[1]*x2
+        self.objective_function_coefficients = []
+
+        # A matrix which, gives the values of the equality constraints at x,
+        # when multipled by x.
+        self.equality_constraint_matrix = []
+
+        # An array of values representing right side of equation,
+        # left side is represented by row of `equality_constraint_matrix`
+        # matrix
+        self.equality_constraint_vector = array([])
+
+        # Specify boundaries of each x in the next format (min, max). Use
+        # None for one of min or max when there is no bound.
+        self.bounds = array([])
+
+        self._initialize_equation(disks, spaces)
+
+        print '*' * 30
+        print self.equality_constraint_matrix
+        print self.objective_function_coefficients
+
+    def solve(self):
+        solution = linprog(
+            self.objective_function_coefficients,
+            A_eq=self.equality_constraint_matrix,
+            b_eq=self.equality_constraint_vector,
+            bounds=self.bounds,
+            options={"disp": True})
+
+        return solution.x
+
+    def _initialize_equation(self, disks, spaces):
+        for d in disks:
+            # Initialize constraints, each row in the matrix should
+            # be equal to size of the disk
+            self.equality_constraint_vector = append(self.equality_constraint_vector, d.size)
+
+        # Initialize the matrix
+        # In case of 2 spaces and 3 disks the result should be:
+        # [[1, 1, 0, 0, 0, 0],
+        #  [0, 0, 1, 1, 0, 0],
+        #  [0, 0, 0, 0, 1, 1]]
+        #
+        # Explanation of the first row
+        # [1, - x1 multiplier, size of space 1 on the first disk
+        #  1, - x2 multiplier, size of space 2 on the first disk
+        #  0, - x3 multiplier, size of space 1 on 2nd disk, 0 for the first
+        #  0, - x4 multiplier, size of space 2 on 2nd disk, 0 for the first
+        #  0, - x5 multiplier, size of space 1 on 3rd disk, 0 for the first
+        #  0] - x6 multiplier, size of space 2 on 3rd disk, 0 for the first
+
+        # For each space x (size of the space) is represented
+        # for each disk as separate variable, so for each
+        # disk we have len(spaces) * len(disks) sizes
+        equality_matrix_row = zeros(len(spaces) * len(disks))
+        self._init_objective_function_coefficient(len(spaces) * len(disks))
+
+        # Set first len(spaces) elements to 1
+        equality_matrix_row = shift(equality_matrix_row, len(spaces), val=1)
+
+        for _ in range(len(disks)):
+            self.equality_constraint_matrix.append(equality_matrix_row)
+            equality_matrix_row = shift(equality_matrix_row, len(spaces), val=0)
+
+    def _add_disk(self):
+        pass
+
+    def _add_space(self):
+        pass
+
+    def _add_objective_function_coefficient(self):
+        # By default the algorithm tries to minimize the solution
+        # we should invert sign, in order to make it as a maximization
+        # function, we want disks to be maximally allocated.
+        # Coefficient for space per disk is 1, because all spaces
+        # are equal and should not be adjusted.
+        self.objective_function_coefficients.append(-1)
+
+    def _init_objective_function_coefficient(self, size):
+        self.objective_function_coefficients = [-1] * size
+
+    def _add_bound(self, min_, max_):
+        append(self.bounds.append, (min_, max_))
diff --git a/bareon_dynamic_allocator/cmd.py b/bareon_dynamic_allocator/cmd.py
new file mode 100644
index 0000000..c3cb030
--- /dev/null
+++ b/bareon_dynamic_allocator/cmd.py
@@ -0,0 +1,101 @@
+#    Copyright 2015 Mirantis, Inc.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See then
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+import sys
+
+from oslo_config import cfg
+from oslo_log import log
+
+from bareon_dynamic_allocator import utils
+from bareon_dynamic_allocator.allocators import DynamicAllocator
+
+
+cli_opts = [
+    cfg.StrOpt(
+        'schema',
+        required=True,
+        help='Input file, path to a file with dynamic partitioning schema'
+    ),
+    cfg.StrOpt(
+        'file',
+        required=True,
+        help='Output path to a file with static partitioning schema'
+    ),
+    cfg.StrOpt(
+        'hw-info',
+        required=True,
+        help='Hardware information'
+    )
+]
+
+
+def make_config():
+    conf = cfg.ConfigOpts()
+
+    conf.register_cli_opts(cli_opts)
+    log.register_options(conf)
+
+    return conf
+
+
+def parse_args(conf, args=None):
+    project = 'bareon_dynamic_allocator'
+    version = '1.0.0'
+    conf(args=args if args else sys.argv[1:],
+         project=project,
+         version=version)
+    log.setup(conf,
+              project,
+              version=version)
+
+
+CONF = make_config()
+parse_args(CONF)
+LOG = log.getLogger()
+
+
+def parse_configs(conf):
+    hw_info = utils.parse_yaml(conf.hw_info)
+    schema = utils.parse_yaml(conf.schema)
+
+    return (hw_info, schema)
+
+
+def save_result(data, output_file):
+    print data
+
+
+def validate_schema(schema):
+    # TODO should be implemented
+    return schema
+
+
+def validate_hw_info(hw_info):
+    # TODO should be implemented
+    return hw_info
+
+
+def allocator():
+    LOG.debug('hi')
+    conf = parse_configs(CONF)
+    validate_schema(conf[0])
+    validate_hw_info(conf[1])
+
+    schema = DynamicAllocator(*conf).generate_static()
+
+    save_result(schema, CONF.file)
+
+
+if __name__ == '__main__':
+    allocator()
diff --git a/bareon_dynamic_allocator/utils.py b/bareon_dynamic_allocator/utils.py
new file mode 100644
index 0000000..a2d91f2
--- /dev/null
+++ b/bareon_dynamic_allocator/utils.py
@@ -0,0 +1,23 @@
+#    Copyright 2015 Mirantis, Inc.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See then
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+import yaml
+
+
+def parse_yaml(path):
+    """Parses yaml file
+    :param str path: path to the file
+    :returns: dict or list
+    """
+    return yaml.load(open(path))