Study on quantity flexibility supply chain contract based on system dynamics

Supply chain contract is becoming an academic and business circles' hot topic. This paper built a two-echelon supply chain structure model with the quantity flexibility supply contract, and then simulated this model. The research indicated that the complex relation among factors of quantity flexibility supply contract could be better revealed with the use of system dynamics methodology. Finally, under the conditions in this paper, an optimal set of parameters that can coordinate the supply chain would be given to the retailer.