: Ability to manage a good distribution channel is a competitive advantage which isimportance for industries. Bad distribution channel will have bad impact in whole aspects oforganization, especially on its profit margin. Precise quantity and on time delivery are crucialaspects of distribution success. Distribution and transportation system have to be designoptimally to result the minimum cost of distribution. Perum Bulog as government agencywho run the distribution of rice have to pay attention on optimizing its distribution channel.In operating their task, Perum Bulog will be support by its sub division who will be managethe distribution process of rice in its own region. This research is focused to define theoptimum combination of channel and quantity on distribution of rice from Sub Divre WestJava to the cities and regencies in order to achieve the minimum distribution cost usingtransportation method, Linear Programming method, and LINDO. As the result of thisresearch, the minimum cost of optimal distribution of rice on West Java Region is 5,3 billionrupiahs.