. Manufacturers are increasingly adopting mixed-flow manufacturing models to meet the growing customized, diverse, and dynamic customer demand. In such an environment, material distribution scheduling optimization is vital for smooth operations and is integral to production management. However, manufacturers frequently encounter problems like disordered and delayed material distribution. Traditional scheduling methods suffer from problems like inadequate transparency, delayed decision directives, and suboptimal results, impacting performance. To this end, this study proposes a dynamic material distribution scheduling optimization model and strategy based on digital twin (DT) to address these problems. Firstly, we introduce workstation satisfaction and establish a material distribution path optimization model minimizing total distribution cost while maximizing workstation satisfaction. Subsequently, we present a cloud-edge computing-based decision framework and explain the DT-based material distribution system's components and operation. Furthermore, a dynamic material distribution scheduling optimization mechanism based on DT is designed. By incorporating a savings method and incentive, penalty strategies, improvements are made to the path node selection probabilities and the information pheromone update rules of the traditional ant colony optimization (ACO) algorithm. Finally, a numerical case study, using real data from collaborating enterprises, validates the proposed algorithm and strategy. This research offers valuable insights into logistics management and algorithm design in smart manufacturing environments.