The ethanol industry in the United States is expanding rapidly, consequently, the amount of coproducts called distillers feed is also expanding at a rapid rate. These distillers can be fed to cattle because they are excellent source of protein, energy and phosphorus. As they are much cheaper than corn and soybeans, a successful attempt to replace corn and soybeans with distillers feed may provide significant advantages to both ethanol producers and the feedlots. In this paper we propose a supply chain model which minimizes the overall cost of distribution of distillers. We will present a case study on Kansas Ethanol plants.