This paper addresses a network design problem in a supply chain system that involves locating both plants and distribution centers, and determining the best strategy for distributing products from the suppliers to the plants, from the plants to the distribution centers and from the distribution centers to the customers. This paper suggests a cooperative coevolutionary algorithm (CCEA) approach to solve the model. First, the problem is decomposed into three subproblems for each of which the chromosome population is created correspondingly. Each chromosome in each population is represented as a permutation denoting the priority. Then an algorithm generating a solution from the combined set of chromosomes from each population is suggested. Also an algorithm evaluating the performance of a solution is suggested. An experimental study is carried out. The results show that our CCEA tends to generate better solutions than the previous CCEA as the problem size gets larger and that the permutation representation for chromosome used here is better than other representation.