Combined optimization between the production and distribution side of electricity must be done because electricity produced must be sent directly to the customer. Electricity cannot be saved so it must be produced as much as Demand. For this reason, the production system must consider losses in the network, where there are two types of losses, namely transmission losses and distribution losses. Power plant scheduling using economic dispatch does not present combined optimization. Therefore, this research has produced a Multi Echelon Economic Dispatch (MED) model. This model is able to make a combined optimization between the production and distribution/shipping sides. Not only that, this model has also divided shipments into 2 parts, transmission and distribution, so that more detailed production scheduling and electricity delivery can be obtained while minimizing fuel costs.