Double Marginalization of VMI and the balance of TMI

摘要

Based on suppliers and retailers two-stage supply chain model (the previous research platform), the paper analyzes the performance parameters of VMI under both sides collaborate with each other to make decision. Due to the reality of economic activities, VMI is more often carried out in an information asymmetry circumstances. It on analysis is found that there exists obvious "Double Marginalization” in the VMI model under the circumstances of information asymmetry. Introducing the third-party logistics, three-stage supply chain model of TMI is constructed. Studies show that TMI can effectively ease the internal friction of system in the two-stage supply chain model and weaken the adverse effects of "Double Marginalization". Meanwhile, TMI can create more overall profits than VMI which is based on the contract form, it is a good inventory management method.