Study on Inventory Management Modes in a Two-echelon Supply Chain

Abstract

In a two-echelon supply chain, two inventory management modes, retailer managed inventory (RMI) and vendor managed inventory (VMI), are analyzed respectively. The products are perishable and sold over a single selling season. We analyze the process of dynamic games between the supplier and the retailer, and equilibrium solutions are presented in different inventory management modes. At last we compare the solutions in different modes, and further research directions are put forward