Binarization of MBAM (Multi-layer Bidirectional Associative Memory) model for easy VLSI(Very Large Scale Integration) implementation with inner product scheme is studied. Only binary storage with this scheme is required for large-scale VLSI implementation. Two methods of storage binarization are introduced. One method is based on error back propagation and the other is utilizing simulated annealing. Computer simulation for binarization with error-back propagation technique shows performance comparable to the result of standard MBAM model having analog hidden units, but the other case shows poor performance caused by improper artificial temperature schedule.