Vendor managed inventory(VMI) embodies the integrated idea of the supply chain management system, and it will reduce the cost of consumer and supplier if the VMI is applied successfully. The work efficiency is greatly affected because the allied suppliers must send people to the enterprise to manage inventory, implement the decision of the stock-in-trade and distill the payment for goods in the traditional VMI model. The decisions are always different because of analyzing the inventory information asynchronously between the main enterprise and the suppliers. A new VMI model based on Internet/Intranet was presented and introduced the framework,functions,the characters of technologies and hiberarchies in detail by analyzing the existing problems from the traditional VMI model. Finally the application of VMI is presented on the background of the enterprise.
