Inventory Commitments Clause Samples
The Inventory Commitments clause defines the obligations of one or both parties regarding the reservation, allocation, or supply of specific quantities of inventory. Typically, this clause outlines how much inventory must be set aside, the timeframes for delivery or reservation, and any conditions under which inventory levels may be adjusted. Its core function is to ensure that sufficient stock is available to meet contractual needs, thereby reducing the risk of shortages or supply disruptions.
Inventory Commitments. The parties shall use their respective commercially reasonable efforts to achieve a targeted *** turns of the Inventory per year. These efforts shall include, but not be limited to, improvements in forecasting accuracy, negotiating and implementation vendor managed inventory (VMI) programs, implementing manufacturing cycle time reductions through lean programs, and reducing supplier lead-times. The parties shall review the actual inventory turns during the quarterly business review. If the turns are below the targeted turns, the parties shall outline actions to improve the turns.
Inventory Commitments. The parties shall use their respective commercially reasonable efforts to achieve a targeted [*] ([*]) turns of the Inventory per year. These efforts shall include, but not be limited to, improvements in forecasting accuracy, negotiating and implementation vendor managed inventory (VMI) programs, implementing manufacturing cycle time reductions through lean programs, and reducing supplier lead-times. The parties shall review the actual inventory turns during the quarterly business review. If the turns are below the targeted turns, the parties shall outline actions to improve the turns. * Confidential treatment has been requested with respect to the information statement contained within the “[*]” marking. The marked portions have been omitted from this filing and filed separately with the Securities and Exchange Commission.