The Application of Supply Chain Management Performance Model Based on VMI

With aggravating of market competition, the operation of supply chain coordination becomes more and more important. Therefore this paper firstly describes the capability and profit of supply chain members and the operation of supply chain coordination using multiple-objective programming and proposes a multi-product, multi-stage supply chain coordination model based on VMI ,which comprises one manufacturer and one supplier; Secondly, an application example is given for testing the effectiveness and feasibility of the model; Lastly, according to parametric various changing, carries on sensitivity analysis of model in order to provide the decision-making reference for optimizing supply chain production capacity and developing the raw material supply channel.