Excess Inventory Disposition Sample Clauses

Excess Inventory Disposition. Bankruptcy: in the case of bankruptcy by either party that is not corrected in accordance with paragraph 18.1.2 above, disposition of excess inventory that exists on the effective date of termination shall be treated as a termination by the party that is the subject of the bankruptcy proceeding.

Excess Inventory Disposition. 11.6.1 Contra-Asset Account On-hand Raw Material, WIP, Finished Goods and on-order Raw Materials liabilities will be evaluated monthly relative to Customer Forecast. In the first week of Supplier’s Fiscal Month, Supplier will notify Customer of inventory balance in excess of Customer’s [ ]* demand at the end of prior Supplier’s fiscal month. By the 15th day of each month, Customer will provide a PO to Supplier for the quoted material value of the excess inventory position. Supplier will book the PO payment to an inventory reserve allocated to Customer on Supplier’s balance sheet. The parts will physically stay in Supplier’s stockroom, warehouse, or WIP stock. The value of excess inventory payments will continue to show in Supplier’s gross inventory, but the inventory reserve (contra-asset) will cause the net inventory position of Supplier’s Customer inventory to be reduced less than the gross position. Reporting of inventory balances to Customer by Supplier would show an itemization of parts that equals the gross position with a line at the bottom of the report which would reflect the reserve position and show a net inventory number. Customer may ship to Supplier a mutually agreed quantity of Customer owned material at Supplier’s current budget price that has demand in the Forecast. Supplier will receive and hold such inventory into Supplier’s on-hand inventory and Supplier will book the inventory value to the reserve account (contra-asset) allocated to Customer on Supplier’s balance sheet. The parts will be physically located in Supplier’s active stockroom, warehouse, or WIP stock. Supplier will refresh the excess inventory analysis to reflect the changes in on-hand inventory on a monthly basis, and provide a consumption report to the Customer the first week of the next month. Supplier is fully responsible for the value of all inventories held * - Confidential Treatment Requested. Omitted portions filed with the SEC. 10 of 20 in Supplier’s warehouse. By the 15th day of each month, Supplier will provide a PO (payment terms of net 30) to Customer for physical inventory reductions as inventory is consumed or otherwise mitigated. Example 1: Inv Qty [ ]* Dmd [ ]* Excess Std Price Extend $ P/N ABC [ ]* [ ]* [ ]* $ [ ]* $ [ ]* P/N DEF [ ]* [ ]* [ ]* $ [ ]* $ [ ]* Total $ [ ]* Additional Reserve $ [ ]* Customer Issue P.O. To Supplier $ [ ]* 11.6.2 Customer will pay Supplier a monthly management fee per site as follows based on the value of the inventory held in t...

Excess Inventory Disposition. Termination Pursuant to Paragraph ▇▇.▇.▇.: In the case of termination pursuant to paragraph 19.2.2, disposition of excess inventory that exists on the effective date of termination shall be treated as a termination by the Party that is the subject of the bankruptcy proceeding pursuant to paragraph 19.1.

Excess Inventory Disposition