Material Procurement and Inventory Management. Supplier will ensure that the amount of finished goods inventory, work in process, and Sun-unique raw materials (“Inventory”) is limited to that amount required to support the agreed upon lead times and Upside, unless otherwise agreed to in writing by Sun. The costs associated with any excess Inventory not authorized in writing by Sun will be borne by Supplier, notwithstanding any provision to the contrary, including Section 2.10.4. (Effect of Stop Production, P.O. Cancellation and EOL).
Material Procurement and Inventory Management. Supplier will ensure that the amount of finished goods inventory, work in process, and Dot Hill-unique raw materials ("Inventory") is limited to that amount required to support the agreed upon lead times and Upside, unless otherwise agreed to in writing by Dot Hill. The costs associated with any excess Inventory not purchased by Supplier under provisions within this Agreement or otherwise authorized in writing by Dot Hill will be borne by Supplier.Within ninety (90) days after the Effecitve Date and a quarterly basis thereafter, Supplier will provide a detailed list by Product of ABC components included in each Product and a plan to require vendors that supply components to Supplier for the Products to be part of a vendor managed inventory program. Supplier will use commercially reasonable efforts to drive key suppliers into a vendor managed inventory program, and Dot Hill will provide reasonable cooperation and appropriate involvement in such efforts. In order to meet Dot Hill forecasted requirements, purchase orders, and the flexibility requirements agreed upon by the parties, Supplier is authorized to purchase materials and make commitments to vendors on the Approved Vendor List ("AVL") and other Dot Hill approved suppliers using standard purchasing practices including, but not limited to, acquisition of material recognizing supplier lead times, ABC order policy, supplier-imposed minimum order quantities (MOQ), minimum build quantities, economic order quantities, component overfill policy, and agreed to inventory buffers. Supplier may maintain at Dot Hill's request a buffer of raw components and/or finished goods, which will be utilized to support Upside Support flexibility. Buffers may be maintained at Dot Hill's request by Supplier or suppliers. Buffer stock levels may be reviewed periodically.
Material Procurement and Inventory Management. 5.1 Fine Pitch is authorized to purchase materials using standard purchasing practices including, but not limited to, acquisition of material recognizing Minimum Order Quantities, ABC buy policy, kanban, attrition allowance and long lead time component management in order to meet the forecasted requirements of Customer. Pursuant to Section 6.0 Excess and Obsolete Inventory, Customer recognizes and accepts financial responsibility for material purchased by Fine Pitch on behalf of Customer provided that Fine Pitch follows standard industry purchasing practices
