Common use of FILL RATES Clause in Contracts

FILL RATES. ABDC commits to a [*****] “Adjusted Fill Rate” on a chain-wide basis measured quarterly. The ”Adjusted Fill Rate” is calculated as follows: (a) An item shorted on an original order will not be counted as a short for the second time until 72 hours from the initial receipt of the short order have passed. (b) Where only a partial quantity is received of an individual line item, it will be a short only if fifty percent (50%) or less of the quantity ordered is shipped. (c) On any new item, or an item previously not ordered by Customer, a period of thirty (30) days will be given to add the item to ABDC’s inventory. This period is computed from the date Customer places the original order and provides estimates on usage. (d) The quantity of an item ordered in a week by a facility that is [*****] of Customer's average weekly volume during the preceding month for such item will not be considered short. (e) Manufacturers' legitimate back orders, unavailability or shortages are not computed as a short order in determining the Adjusted Fill Rate. Achievement of the [*****] Adjusted Fill Rate will be deemed a material term of this Agreement.