This paper addresses a model for the transportation planning that determines the transportation cycle time and the vehicle size to minimize the cost in a distribution system. The vehicle routing to minimize the transportation distance of the vehicles is also determined. A distribution system is consisted of a distribution center and many retailers. Products are transported from distribution center to retailers according to transportation planning. A model is assumed that the time horizon is continuous and infinite, and the demand of retailers is constant and deterministic. Cost factors are the transportation cost and the inventory cost, which the transportation cost is proportional to the transportation distance of vehicle when products are transported from distribution center to retailers, and the inventory cost is proportional to inventory amounts of retailers. A transportation cycle time and a vehicle size are selected among respective finite alternatives. The problem is analyzed, and a illustrative example is shown.