Prudent Procurement Practices definition

Prudent Procurement Practices are hereby defined to include, but are not limited to, the following:
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Prudent Procurement Practices means commercially reasonable practices in connection with purchasing Components to meet Forecasts and Orders and to support variations in demand for such Forecasts and Orders, including (a) utilizing minimum order quantities and economic order quantities approved by OJO; (b) ordering and buying Components as required to meet Manufacturing Lead Times; (c) negotiating most favored customer terms with suppliers; and (d) exercising return and cancellation privileges.
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Examples of Prudent Procurement Practices in a sentence

  • Kenmec will purchase Components using Prudent Procurement Practices to support OJO’s Forecasts and Orders and react to support the variations in demand using Prudent Procurement Practices for such Forecasts and Orders to deliver Products to OJO in accordance with specified Scheduled Shipment Dates.

  • If Kenmec has not followed Prudent Procurement Practices, in the event of excess Component inventory due to cancellation, termination or demand reductions with respect to Forecasts and Accepted Orders, OJO will not be liable for that portion of the Component inventory purchased in excess of the amount that would have been purchased if Prudent Procurement Practices had been used.

  • If Kenmec has followed Prudent Procurement Practices, OJO assumes ultimate financial responsibility for the direct costs for work in progress, Product inventory and Component inventory to meet Accepted Orders that have been canceled or decreased or Forecasts that have been revised.

  • If Kenmec has followed Prudent Procurement Practices, in the event of excess Component inventory due to cancellation, termination or demand reductions with respect to Forecasts and Accepted Orders, OJO will be liable for such excess Component inventory.

  • Except as provided below, Forecasts supplied to Kenmec from OJO are provided as an accommodation for planning purposes and for Kenmec to purchase Components to meet the quantities stated using Prudent Procurement Practices.