Inventory Allowance definition
Examples of Inventory Allowance in a sentence
In order to assist Buyer in controlling the levels of supplies of Concentrates in inventory beginning with the second Contract Year and continuing each Contract Year thereafter, an Inventory Allowance is established.
The Annual Shipping Schedule Quantity shall be subject to adjustment as provided in Section 3.3 to take into account the Inventory Allowance which Buyer may elect to utilize.
Such report (“Inventory Allowance Report”) shall include the forecasted Inventory Allowance usage for the following two (2) calendar months.
The sum of the quantities reflected for all months in such preliminary monthly shipping schedule for the third Contract Year shall not exceed the Annual Shipping Schedule Quantity for such Contract Year; provided, however, Buyer will issue an adjusted monthly shipping schedule in such Contract Year if it elects to exercise its rights to an Inventory Allowance in accordance with the provisions of Section 3.3.
The effect of declaring an Inventory Allowance quantity is that the Annual Shipping Schedule Quantity for each year in which such declaration is made shall be automatically increased or reduced by the quantity of the positive or negative Inventory Allowance, respectively.
Supplier reserves the right to recalculate the Inventory Allowance and any of its components at its reasonable discretion.
Buyer shall submit to Seller at the time that it submits its Inventory Allowance declaration to Seller an adjusted annual shipping schedule.
The sum of the quantities reflected for all months in such preliminary monthly shipping schedule for such Contract Year shall not exceed the Annual Shipping Schedule Quantity for such Contract Year; provided, however Buyer may issue an adjusted monthly shipping schedule in any such Contract Year in which it elects to exercise its rights to an Inventory Allowance in accordance with the provisions of Section 3.3.
On a monthly basis, Supplier shall recalculate and report for the current calendar month (a) the Inventory Allowance by refreshing T6M Revenue and F3M Backlog, as applicable, and (b) Customer’s usage of the Inventory Allowance.
Should Buyer not comply with Section 3.6, Supplier shall levy an interest charge on the Inventory Allowance Overage amount with such interest charge being equal to the Secured Overnight Financing Rate (as of the date that such interest charge is levied) + 8% per year, invoiced monthly, with such invoices due for payment by Buyer within ten (10) days.