Abstract: Supply chain consists of all stages involved, directly
or indirectly, includes all functions involved in fulfilling a customer
demand. In two stage transportation supply chain problem,
transportation costs are of a significant proportion of final product
costs. It is often crucial for successful decisions making approaches
in two stage supply chain to explicit account for non-linear
transportation costs. In this paper, deterministic demand and finite
supply of products was considered. The optimized distribution level
and the routing structure from the manufacturing plants to the
distribution centres and to the end customers is determined using
developed mathematical model and solved by proposed particle
swarm optimization based genetic algorithm. Numerical analysis of
the case study is carried out to validate the model.