There　are　various　types　of　grey　information　in　distribution　network　of　supply　chain,　which　are　helpful　to　improve　practical　usefulness　of　distribution.　In　this　paper,　grey　demands　existed　in　supply　chain　have　been　discussed,　and　an　optimization　model　of　distribution　network　with　grey　demands　is　proposed.　The　model　is　NP-hard,　and　a　hybrid　particle　swarm　optimization　algorithm　based　on　grey　chance-constrained　programming　is　proposed　to　solve　it.　The　results　of　example　show　that　the　model　and　the　algorithm　are　effective　for　dealing　with　distribution　problem　of　supply　chain　with　grey　demands.　©　2011　IEEE.