Material Requirement Planning Process Sample Clauses

Material Requirement Planning Process. 1. Sanmina shall take the Order and Forecast and generate a Master Production Schedule (“MPS”) for a six-month period in accordance with the process described in this Section. The MPS shall define the master plan on which Sanmina shall base its procurement, internal capacity projections and commitments. Sanmina shall use Customer’s Order to generate the first two (2) months of the MPS and shall use Customer’s Forecast to generate the subsequent six (6) months of the MPS. 2. Sanmina shall process the MPS through industry-standard software that will break down Customer’s Product requirements into Component requirements. When no Product testing (in-circuit or functional testing) is required by Customer, Sanmina will use commercially reasonable efforts to schedule delivery of all Components to Sanmina eleven working days before the Products are scheduled to ship to Customer; in the event Product testing is required, Sanmina will use commercially reasonable efforts to schedule delivery of all Components to Sanmina [***] working days before the Products are scheduled to ship to Customer. 3. Sanmina will release purchase orders to Vendors prior to the anticipated date that the Components are needed by Sanmina. The date on which these orders are released will depend on the lead time determined between the Vendor and Sanmina and Sanmina’s manufacturing or materials planning systems, provided that any order will be made as late as possible. 4. A list of all Components with lead times greater than ninety days (“Long Lead-time Components”) shall be provided. Sanmina shall update the list of Long Lead-time Components every quarter and present an updated list of Long Lead-time Components to Kornit at the time Sanmina presents Kornit with the E&O List described in Section E, below. Each revised Long Lead-time Item list shall be deemed an amendment to Exhibit B. In the event Sanmina fails to present an updated list of Long Lead-time Components, the parties shall continue to rely on the preceding list (as updated in writing by the parties). It is agreed that it is Sanmina’s responsibility to update Kornit with any extended lead time or changes in the standard lead time of BOM components. 5. Kornit acknowledges that Sanmina will order Components in quantities sufficient to support up to six months of Kornit’s Forecast. For the avoidance of doubt, Kornit will be required to issue a Purchase Order only with respect to the Long Lead-time Components which were ordered by Sanmin...