In view of a two-level vendor management inventory supply chain composed of the risk neutral suppliers and retailers and with considering the inventory-dependent demand and expired cost exist in the system, establishes the model of VMI supply chain under centralized control and decentralized control. Proves that VMI supply chain exists double marginalization under decentralized control. Designs a cost-sharing contract to coordinate the supply chain with retailers sharing the suppliers’cost. The results show that the contract increases the enthusiasm of the suppliers involved in the mechanism of VMI and achieves win-win between the suppliers and retailers.