Researches On Supply Chain Coordination Strategy Under Vendor Managed Inventory

The studied title is come from National Natural Science Foundation Project (grant number: 70771034): The Research on inventory and distribution coordination model and method based on the non-integrated supply chain; the major project of Guangdong university humanity and social science research (grant number: 08JDXM63003): The research on supply chain risk management and method based on option contract.Vendor Managed Inventory(VMI) is a co-operation strategy between suppliers and the downstream enterprises. It can effectively integrate the functions of inventory management, and reduce the negative effects from the bullwhip effect, so it can reach the purpose of reducing total supply chain costs and enhance overall competitiveness of the supply chain. However, the implementation of VMI needs coordination and cooperation between the two sides. How to allocate benefits becomes the key to successful implementation for VMI. Therefore, the study of VMI supply chain system coordination is of great practical importance to improve the overall performance.In recent years, theoretical research of the VMI-based supply chain coordination attacts many scholars'concern at home and abroad, and has made some progress, but research results have focused mainly on the VMI system coordination under information symmetrical, mostly assuming that the residual value of merchandise is zero, not considering the fine. Based on previous studies this paper, about VMI systems under the stochastic demand, analyzes a series of cases of supply chain coordination problem such as stock losses, asymmetric information. The specific research contents are as follows:1. Taking the two-stage VMI supply chain system composed of suppliers and retailers as the research object, considering the possibility of unsalable cost or out punishment under the stochastic demand of the VMI system, we have set up the traditional, Stackelberg game, Nash Negotiation—a coordination model with three kinds of revenue sharing mechanisms, and found that Nash Negotiation can coordinate distributed VMI supply chain perfectly. Finally, through numerical examples the relevant conclusions are verified and analyzed. 2. About the two-tier supply chain under VMI, considering the manufacturer's production cost information—symmetric and asymmetric and designing VMI coordination mechanisms based on transferable utility-discount strategy by principal-agent theory, we effectively improve supply chain inefficiency caused by inconsistent encouragement and information asymmetry under the decentralized supply chain structure, so that manufacturers and retailers can realize the improvement of pareto while improving the profits of the supply chain channel .Results of these studies have enriched the content of VMI coordination theory, provided a theoretical support for establishing a long-term effective cooperation mechanism VMI, and a scientific basis for decision makers.