Forecast Minimum Buys Excess and Obsolete Inventory Clause Samples
This clause establishes the procedures and obligations related to forecasting product demand, setting minimum purchase requirements, and managing excess or obsolete inventory. It typically requires the buyer to provide regular forecasts of anticipated purchases, obligates the buyer to purchase at least a specified minimum quantity, and outlines how surplus or outdated inventory will be handled—such as through buy-back provisions or disposal terms. The core function of this clause is to balance supply chain efficiency and risk by ensuring the supplier has sufficient information and commitment to plan production, while also addressing the financial impact of unsold or obsolete goods.
Forecast Minimum Buys Excess and Obsolete Inventory. (a) Initial Forecast. [***]
Forecast Minimum Buys Excess and Obsolete Inventory. (a) Forecast. CUSTOMER will provide VENUSA with an initial sixty (60) day order and a forecast for Product requirements (in monthly buckets) for an additional six (6) months (“Forecast”). The Forecast shall be non-binding for Product deliveries. The Order – and all subsequent Orders – shall be firm, considered binding, and may be rescheduled only in accordance with Section 4.2(c). VENUSA shall make purchase commitments to its Component suppliers based upon the Order and Forecast, and CUSTOMER shall be responsible for all such purchase commitments, including but not limited to, Components purchased in support of CUSTOMER’s then-current Forecast. Acquisition of inventories that are in excess of the requirements to support the Order shall require CUSTOMER’s prior written approval. For the purposes of this Agreement “Components” shall mean any and all, raw materials, parts, accessories, components, or items purchased or ordered by VENUSA to develop and manufacture the Products for CUSTOMER.
Forecast Minimum Buys Excess and Obsolete Inventory. (a) Initial Forecast. Ninety days (90) before the expected delivery date of the first Products, CUSTOMER shall provide SANMINA with (i) an initial ninety (90) day firm Order and (ii) a forecast for Product requirements (in monthly buckets) for an additional nine (9) months (“Forecast”). All Orders shall be binding and may be rescheduled only in accordance with Section 4.2(d), or cancelled upon payment of (1) the purchase price of the Product (if the cancellation is made within 30 days of the scheduled delivery date) or (2) the amounts set forth in Section 4.2(f) (if cancellation is made outside of such 30-day period). SANMINA shall make purchase commitments (including purchase commitments for Long Lead-time Components) to its Component suppliers (“Vendors”) based upon the Order and Forecast, and CUSTOMER shall be responsible for all such Components purchased in support of CUSTOMER’s then-current Forecast. For all other purposes, however, the Forecast shall be non-binding.
Forecast Minimum Buys Excess and Obsolete Inventory