DIOH definition
Examples of DIOH in a sentence
With respect to the Products included in the single lot QAP inventory programs, the payment terms to Supplier shall be set to match the Distributor's Inventory Days on Hand (DIOH).
The monthly calculation of DIOH shall be as follows: (i) then-current raw material inventory balance (ii) divided by annualized cost of goods sold (“Annualized COGS”) [which equals the last three months actual sales multiplied by 4 multiplied by [***] (iii) multiplied by 365 (the “Monthly Calculated DIOH”).
On the first business day of each month, beginning on January 1, 2014, Cardinal Health shall calculate its current Days of Inventory on Hand (DIOH) of Supplier’s raw material inventory for all channels.
If Supplier executes its option to buy back Excess Inventory, as outlined in Section 1.2.c. above, Cardinal Health will not be required to make additional purchases of inventory because of Supplier’s buyback purchase of Excess Inventory, and Supplier’s purchase of any Excess Inventory will also be factored into the next reported Monthly Calculated DIOH to reflect the resulting lower inventory balances held by Cardinal Health.
If at the end of the Bleed Down Period (December 31, 2014), the DIOH of Supplier’s raw materials is still above the Target DIOH Level [***], Supplier shall have 45 days to purchase back inventories sufficient to allow Cardinal Health achieve the Target DIOH Level or Cardinal Health may thereafter elect to cease purchasing product from Supplier until such time as the Target Inventory Level set forth in Section 1.2.a. of the First Amendment to the Agreement is reached.
Once the Monthly Calculated DIOH is established for a given month, Cardinal Health will determine the inventory bleed down for each remaining month between January 1, 2014 and December 31, 2014 (the “Bleed Down Period”) by subtracting the Target DIOH Level from the Monthly Calculated DIOH and then dividing by the number of remaining months in the Bleed Down Period.
Exhibit B reflects guidelines for DIOH Plans; provided, however, that for purposes of Exhibit B the Dade Behring Hemostasis Products shall not be considered part of the Hemostasis class of Products.
The foregoing two hundred fifty-six (256) day period shall be reviewed on June 30, 1995 and on each six-month anniversary occurring thereafter and adjusted based on the previous twelve month's average monthly DIOH.
The last two sentences of the first paragraph of Section 8(d) of the Distribution Agreement are hereby amended to read in their entirety as follows: Distributor and Supplier shall prepare an annual DIOH Plan presenting data on a quarterly basis considering the Sales Plan, and an analysis of past trends and planned process changes agreed upon by both parties; provided that the Dade Behring Hemostasis Products shall not be included in any such DIOH Plan.