This paper investigates the two-stage VMI supply chain coordination problem with a loss-averse supplier and a risk-neutral retailer. The main conclusions can be obtained as follows: the loss-averse supplier’s optimal production volume may be less than(equal to or more than) the risk-neutral supplier’s optimal production volume; the loss-averse supplier’s optimal production volume increases with the unit net salvage(unit shortage cost), decreases with the unit inventory cost, and increases or decreases with the unit wholesale price(unit manufacturing cost) under certain conditions; the wholesale price contract can coordinate the two-stage VMI supply chain under certain conditions.