ITIO strategy and model of West-East gas transmission supply chain based on VMI contract

VMI contract reallocates the decision rights of inventory management between the suppliers and the buyers, which can attain the goals of "communication and coordination". The exact attribute of West-East Gas Transmission supply chain is illustrated, the VMI system of the supply chain is designed. The ITIO model is built under VMI contract with lead time. Renewal theories of Stochastic Process are applied to analyze this Non-Linear Programming model. The datum with different parameters and the long-term average overall cost created by the implementation of strategies are obtained by numerical simulation. This study provides a technical support for and insight into strategy selection and decision making of West-East Gas Transmission supply chain.