VMI Coordination Based on Price Subsidiary Mechanism under Exogenous Price

As price is exogenous variable, we put forward the price subsidiary mechanisms of traditional model, Stackelberg model and Nash negotiation models to coordinate VMI. Under the price subsidiary mechanism, the numeric examples show the traditional VMI coordination model isn´t reasonable. The VMI coordination of Stackelberg game model can´t get optimal expected benefit of the integrated supply chain, but can improve the benefit of retailer and supplier. The VMI coordination of Nash Negotiation model can not only get optimal expected benefit of the integrated supply chain, but can improve the benefit of retailer and supplier greatly, so it can perfectly coordinate decentralized VMI.