Abstract:Production flexibility and supply chain contract flexibility are two basic elements to achieve supply chain flexibility. The current study of supply chain flexibility both at home and abroad are focused on production flexibility and contract coordinate separately. Quantity flexibility contract, a new method of supply chain coordination, is widely used in emerging industries, especially in electronics industry. It is also attracted attention from academic communities. In flexible contract research, some researchers use newsboy model and other classical models to study about the new coordinate method. Contract flexibility can’t be separated from production flexibility. In modeling research, production flexibility should also be fully considered. In this paper, we introduced production flexibility into flexible contract models to modify supply chain coordinate status and work out a method to calculate optimal order quantity in quantity flexibility contract.