Abstract: By constructing a multi-phase game model,how the game structure of retailer and supplier will give impact to the performance of supply chian in VMI is analyzed and investigated.The result indicates that when retailer and supplier play a static Nash game in which retailer and supplier make decision simultaneously,the performance of supply chain will become worst,and when one player makes decision first in the game,the performance of supply chain will get improved obviously.In the end,a numerical example is provided to verify the conclusion.

Key words: game theory, VMI, supply chain