Common use of Product Forecast Clause in Contracts

Product Forecast. 4.1. It is agreed that Customer will provide Supplier, on a weekly basis Product Forecast. * - Confidential Treatment Requested. Omitted portions filed with the SEC. 4.2. Customer agrees to hold a firm four (4) weeks plus current week schedule in the forecast. Schedule changes within four (4) weeks of Forecast plus the current week may be required to support Customer demand, however they must be mutually agreed to by both parties. Supplier shall provide Customer a net change analysis of new forecasts and load forecast in MRP within five (5) business days. 4.3. Business simulation or “what if” analysis will be required as business conditions warrant. Supplier to provide an initial “sizing” of the request on a best effort basis within a twenty-four (24) hour period. Supplier must provide a complete analysis on how the Teradyne schedule can be achieved within five (5) business days. This change must be mutually agreed upon. The initial response will raise the constraining items, the complete response will provide information on Supplier’s ability to solve these original constraints. Key response items to include are: a. Material constraints. b. Manufacturing and test constraints. c. Premium and test charges.