The contributions of this research is multi-fold: (a) we determine the optimal hub location, commodity transportation and wholesale price for suppliers and the order quantity for retailers simultaneously. These issues have not been integrated into an framework and optimized simultaneously in prior literature;(b) we provide a bi-level formulation to model the decision planning is sues of both the supplier and the retailer. The lower level problem for the retailer is continuous while the upper level problem for the supplier is discrete. Few formulations with bi-level framework could integrate two different kinds of mathematical problems together; (c) we use computational experiments on randomly generated data to verify the optimal decisions of suppliers and retailers. Our results show that our model could reflect the competence between the supplier, and that which kind of retailer could get the large retail profit.