This paper introduces a new approach for targeting minimum total annual operating cost of heat integrated resource allocation network. This cost includes fresh resource and utility costs. Primary analyses are led to specify an adequate search space for the variables. A mixed integer linear programming (MILP) model is presented to design the heat integrated resource allocation network. The objective function includes fresh resource, waste discharge and utilities. Heat integration is realized with a modified transshipment model, where a predefined temperature scale is built in order to account for non-isothermal mixing. (C) 2015 Elsevier Ltd. All rights reserved.