Supply chain stakeholders are increasingly paying attention to the optimal design of their supply chains because of several reasons like increasing production cost, reducing product life cycles, shrinking resources, and environmental sustainability. There has been greater emphasis on environmental concerns whilst designing the supply chains because of emerging government legislation in this domain and pressure from society.As a result, supply chain partners need to analyse their operations more critically. This study proposes a strategic decision-making model considering the operational costs caused by coordination and optimization of the sustainable supply chain design to satisfy the demand at retailers. In the study, an integrated supplier selection, procurement,inventory control and transportation model is discussed that helps in evaluating the suppliers, determining optimum quantity to procure, choosing transportation vehicle type along with managing environmental issues, obtaining optimal stock keeping units(SKU) and safety stock for each product category to fulfil a specified service level for retailers at minimum cost for the next planning horizon. The model demonstrates that how demand at retailer drives the full supply chain coordination and selection of distribution centre. The model has been validated through a case study.