In order to solve the placement problem of three kinds of feeder terminal units (FTU) in the distribution network, this paper proposes a novel mathematical model. The model considers economic cost and electricity supply reliability from the perspective of life cycle cost. The reliability algorithm in this model is established for the distribution network configured with centralized feeder automation. Different evaluation indices of reliability and the importance of several kinds of customers are also considered in this model. Aiming at the reliability evaluation in this model, this paper puts forward the reliability analysis method for the distribution network with three kinds of FTUs. In view of the difficulty to express the reliability of distribution network in a formula with decision variables, and the non-deterministic polynomial hard (NP-hard) nature of this model, a variety of intelligent algorithms are applied to solve the model. The feasibility and effectiveness of the model and methods for FTUs placement optimization problem are verified by a case study of the Roy Billinton test system (RBTS) Bus 5 system.