This paper presents a conceptual model development for Australian SMMEs collaboration in a global supply chain environment. Specifically, it focuses on the production distribution network problems amongst SMMEs. Due to the complexity and extend of the paper, it was split in two sections. Model development of a collaborative production distribution network has been discussed in the first section along with the development of chromosome encoding approach in GA. This second part details the rest of the genetic algorithm (GA) for the optimization process in the developed model. The developed GA in the first part was designed to work only with feasible chromosome. Hence, in this second part, other genetic operators were need to be modified in order to handle the constrained character of the developed chromosome encoding approach. In the end of the discussion, an example of applying the algorithm in the network model for optimizing the participants’ configuration to fulfil final customer product demand is presented.