This paper establishes VMI-APIOBPCS II model by extending VMI-APIOBPCS model from serial supply chain to distribution supply chain. Then TPL is introduced to this VMI distribution supply chain, and operational framework and process of VMI&TPL integrated supply chain are analyzed deeply. On this basis VMI-APIOBPCS II model is then changed to VMI&TPL-APIOBPCS model and VMI&TPL integrated operation mode is simulated. Finally, compared with VMI-APIOBPCS model, the TPL’s important role of goods consolidation and risk sharing in VMI&TPL integrated supply chain is analyzed in detail from the aspects of bullwhip effect, inventory level, service level, and so on. 1. Introduction Under vendor-managed inventory (VMI) operation mode, many suppliers outsource their logistics to third-party logistics (TPL) due to their poor logistics capabilities. So far, that TPL participates in VMI has been widely used in many industries. For example, Dell and Lenovo both chose Burlington Company to help them operate VMI service, and Wuhan Shenlong Automobile Company in China allows GEFCO to provide VMI service with components supply. On the one hand, this integrated operational model combining VMI with TPL ensures that the supply chain information is shared fully on one central platform. On the other hand, it can take full advantage of TPL and reduce the total operational cost of the supply chain. As to the research of VMI&TPL integrated replenishment and delivery, ？etinkaya et al. [1] take Dell as an example, which outsources VMI business to Burlington Logistics, and analyze TPL replenishment and delivery strategies. They do not only consider the optimal delivery strategies about logistics outsourcing but also find out differences of the optimal delivery strategies before and after outsourcing. Based on the above study, ？etinkaya and Lee [2] consider the time-based delivery policy and obtain the optimal delivery time structure with transportation lot constraints and capability limitations while the demand of retailers obeys the Poisson distribution. Lee et al. [3] assume that the replenishment and delivery can be started at the beginning of each period with determined demand and finite horizon and that the lead time for delivery of the replenishment is zero. They consider the problem of inventory and transportation integration, which is similar to ？etinkaya and Lee [2]. In order to achieve economies of transport scale, TPL implements goods consolidation strategy. As a result, products may be delivered to retailers in an earlier or later time, which would lead to the inventory
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