Supply-hub, also known as VMI-hub, vendor-hub, supplier-hub and materials-hub (center), is usually located near the assembly plant. It is a kind of integrated service facility that stores some or all of the raw materials under the agreement and charges appropriate fee according to the actual amount of consumed materials. In response to ever-shortening product life cycles and to meet customers’ demand, currently, supply-hub operation mode has been widely used in the assembly and production industry such as the automobile and electronics. For example, BAX Global is responsible for Apple, Dell and IBM and other IT companies with their supplies in Southeast Asia, and United ParcelService manages goods and materials procurement for Fender overseas, which achieves its integration of process in distribution.