Abstract: Coordination and control on water inventory of the node lake is an important content in operation and management of South-to-North Water Transfer Project.By introducing inventory control theory of supply chain,simple water supply chain consisting of the pumping mouth at the Changjiang River and a single node lake is studied in the article.Then optimal water ordering quantity model of the node lake,profit models of the pumping mouth and the node lake under centralized decision,independent decision and VMI decision of water inventory are established.After that,transfer payment coordination strategy of water inventory management under VMI strategy is advanced and the validity of the coordination strategy is calculated.Finally,the conclusions are validated by simulation testing.

Key words: vendor management inventory(VMI), South-to-North Water Transfer Project, water inventory, inventory coordination strategy