Research On The Supply Chain Members' Revenue Distribution Model And Strategy In VMI System

The competition between supply chains is very important in 21 century. The inventory management has a more important role in supply chain management than which acts as a patulous company, because inventory management not only affects the cost of member company in the supply chain but also restricts the integrated cost, the whole performance and competition advantage. The traditional inventory management mode which is local optimum and serially linked now is gradually changed to a new inventory management under supply chain strategy partnership.VMI is a supply chain strategy where the vendor or supplier is given the responsibility of managing the customer's stock. The supplier owning the inventory, decides the stock level and replenishment policies, and has the rights of stock control. In order to make the decentralized supply chain members behaving coherently between each other, and achieving a centralized performance, this thesis basing on revenue sharing studys the distribution model of the supply chain strategy partnership basing on VMI, and is hoping to provide advices for the building of win-win relationship between VMI cooperators in practice.At first, referring to a lot of relevant literatures, this paper discusses the main ideas of VMI and supply chain contract, such as the characteristics, the main objectives, the key factors and the evaluated standards, which form the base for the construction of model and practice analysis.Then, considering on the VMI mode, in single echelon supply chain, a single supplier sells a single product to a single retailer who faces uncertain demand. The supplier is given the responsibility of managing the customer's stock, and suffers the inventory costs and bears the risk of uncertain demand. And the buyer decides the distribution rate of profits between them. The basic model is based on revenue sharing ideas, and it confirms that the model can't achieve supply chain coordination. Since that, the paper adds surplus remedy factor to construct optimal model, and gets the contract parameters {λ, r} to coordinate the supply chain. Furthermore, to inspire the supplier responding the demand actively, this paper constructs incentive model with the factor of customer service level rewards. Then the contract parameters {β, r} is confirmed to achieve supply chain coordination, stressing on the target of customer service level.At last, in order to analyze the member's profits influenced by the change of the internal and external environment, the paper choose the parameters such as demand fluctuate, capital occupation cost and customer service level index, and analyzes their sensitivities by numerical calculation in order to observe the change of revenue for both members. The management strategy is put forward at the end of the paper.