Formulation on VMI System Integration and Income Sharing Contract

This article first carries on the integrated optimization to the VMI system, finds out the integrated optimization model, then analyses system alliance's validity through the cooperation gambling theoretical, computes system various members' Shipley value, further judges the VMI system's validity from the cooperation structure, seeks for the strategy partner member, and assigns the sharing income, so formulates the VMI system income sharing contract, finally carries on the confirmation through the empirical analysis example, we can see that the inventory cost and the shortage cost increase, the market price elastically to increase can reduce the seller's competitive power in the VMI system income sharing contract, this provides the rationale base for enterprise coordinated and the cooperation question's further discussion in the VMI system.