Abstract: The distribution costs comprise four items: fixed costs, transportation costs, inventory holding costs and backordering costs in the supply chain. It is a difficult problem how to reduce the total expected distribution costs on the based of keeping the sales in the supply chain management. In this paper, we proposed a optimization bi-level programming model of two-echelon distribution network with a supplier, multi-distribution-centers and multi-shops based on analyzing a distribution model with a supplier, a distribution center and multi-shops under the condition of centralized control and uncertainty demand and capacity of distribution center, solves the model with intelligent optimization algorithm. The simulating results denote that it is effective to use our model to optimize the two-echelon distribution network in the supply chain under the condition of uncertainty demand and capacity of distribution center.