Transportation is a fundamental element in supply chain.It concerns with the process of physical movement fromorigins to meet quantity of demand in destinations.Transportation problem has objective to minimize totalcost and constrained with supply capacity. This paperproposed an algorithm to solve fuzzy transportationproblem with imprecise supply and demand condition. Itis positioned as a direct extension of transportationalgorithm developed in [1]. The developed algorithmconsists of three stages: (i) selection of basic variable,based on maximal disparity reduction criterion, (ii)optimality evaluation, based on cost comparison, and (iii)deffuzification of fuzzy allocation. The proposedalgorithm has been applied to solve the distributionproblem of a health drink company in Indonesia.