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 Die manufactured to the planned amount of Die to be manufactured to fulfill Company and Contractor’s other customer(s)’ Purchase Order(s) for Die and Product. Such reports shall separately display safety stock (buffer stock) amounts, and will be used to minimize the effort required in determination of excess Die inventory and to forecast the need for Contractor and Company accounting reserves.