Transportation problem is a special class of linear programming problem that deals with shipping a commodity from sources to destinations. This paper presents a method for finding the optimum solution of a crude palm oil transportation problem with the objective of distance minimization. This commodity originates at the mills and sent to the refineries using a single capacity tanker trucks. A number of mills in the Northern part of Peninsular Malaysia are selected as the sources and a number of refineries as the destinations. This is also an unbalanced transportation problem where demand exceeded supply. An integer programming model was developed and run using the Ilog software. The results indicate that this method performs well in terms of the solution exhibited the best mill-to-refinery assignment. The study was further extended to see the effect on total distance when the refineries were relocated at different towns in this part of the country. At one of these locations we found that the total distance was reduced to almost half compared to the original optimal solution.