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Caching and replication have emerged as the two primary techniques for reducing the delay experienced by end users when downloading web pages. Even though these techniques may benefit from each other, previous research work tends to focus on either one of them separately. In this paper we investigate the potential performance gains by using a CDN server both as a replicator and as a proxy server. We assume a common storage space for both techniques, and develop an analytical model that characterizes caching performance under various system parameters. Based on the models predictions, we can reason whether it is beneficial to reduce the caching space in order to allocate extra replicas. The resulting problem of finding which object replicas should be created where, given that any free space will be used for caching, is NP-complete. Therefore, we propose a hybrid heuristic algorithm (based on the greedy paradigm), in order to solve the combined replica placement and storage allocation problem. Our simulation results indicate that a simple LRU caching scheme can considerably improve the response time of HTTP requests, when utilized over a replication-based infrastructure.