VMI coordination based on the inventory competitive products

During the studying of the supply chain benefits under VMI(Vendor Managed Inventory) environment with inventory competitive products, the separation of decision-making power between suppliers and retailers will lead to the revenue´s declining of the whole supply chain. To solve this problem, a cost-sharing contract is proposed to strengthen the coordination and cooperation of the supply chain. With the cost-sharing contract, the retailers will undertake a part of the suppliers´ product costs. The suppliers are willing to provide more products, and the suppliers, the retailers and the whole supply chain´s profits will increase.