Common use of Consumption Report Clause in Contracts

Consumption Report. Company and Contractor agree to the creation of a monthly Consumption Report that compares the actual amount of Product manufactured to the planned amount of Product to be manufactured to fulfill Company Purchase Order(s) for Product. Such reports shall separately display safety stock (buffer stock) amounts, and will be used to minimize the effort required in determination of excess Product inventory and to forecast the need for Contractor and Company accounting reserves.

Consumption Report. Company and Contractor agree to the creation of a monthly Consumption Report that compares the actual amount of Product manufactured Materials consumed to the planned amount of Product Materials to be manufactured consumed to fulfill Company Purchase Order(s) and other Contractor’s other customer(s)’ requirements for Productsuch Materials. Such reports shall separately display safety stock (buffer stock) amounts, and will be used to minimize the effort required in determination of excess Product Materials inventory and to forecast the need for Contractor and Company accounting reserves.