In th is paper, a m u lt i2m anufactu rer2m u lt i2dist ribu to r system is studied. By syn thesizing inven to ry co st, o rdering co st, t ran sit co st asw ell as sho rtage co st, a comp rehen sive co stmodel of dist ribu te system s is estab lished under the rest rict ion of service level, on w h ich the dist ribu to r sat isf ies the m arket. Hence, the co st m in im izat ion p rob lem is so lved, and the op t im al o rdering quan t it ies are calcu lated fo r the afo rem en t ioned scenario s. Fu rthermo re, sim u lat ion resu lt s of the co st model on the p ricing param eter and the o rdering rate param eter are p ropo sed. In detail, the to tal co st w ill decrease relat ively fast w hen the p ricing param eter, b, decreases. The geograph ic characterist ic of the dist ribu te system w ill inf luence the op t im al o rdering rate betw een the supp liers. The op t im al o rdering rate is a m edium num ber, rather than the b iggest o r the sm allest.