The primary objective of this study is to design optimal food supply chain network for Maed food complex share company. On these premise the study investigates the optimal location of retailer to minimize cost and designing suitable design of distribution center. The study utilizes for transportation system and location identification and also to determine the optimal decision and solve transportation model decision making formulated model. The raw material and finished production of transportation model to find the minimum cost of a linear transportation type and represented as transportation tableau which was solved initial basic feasible solution and optimal solution. From the results of the analysis, it is shown that all three methods of initial basic feasible The North-West corner method gave transportation cost of 255,565,221.286 ETB, Least Cost (minimum) method gave transportation cost of 385,801,916.946 ETB and Vogel Approximation method gave 238,141,200.6555 ETB as its transportation cost. The above result shows that Vogel Approximation method is the most efficient of initial basic solution all the methods because it has the least transportation cost, from start this result to calculate more optimal solution by using An MODI Method – UV Method gave 238,141,200.6555. From the optimization of the cost by MODI method-UV method. From the result and discussion part the facility location is selected at Deremarkos using different criteria. The main suppliers for the company are east Gojam, south wello, North Shewa and south Gondar. Proposed destinations for raw material are Debre Elias, Debre Birihan and Bahir Dar. Having those destinations the transportation model result reveals 244,731.89 tone and 16,814.85 tone supply from east gojam to Debre elias and Debre Birhan respectively. South wello supply 46,450.6389 tone, and 107,422.6111 tons, raw material to Debre Birhan and ,Bahir Dar respectively. South Gondar supply 120,494.4167 ton raw material to Bahir Dar. The final supplier which is North Shewa supply 114,281.25 tone to Debre Birhan and 84,000 tone somewhere or may be store at company inventory by zero cost at the minimum cost of transportation of 238,141,200.6555 ETB.