Should provide for weekly releases with 1-week lead-time.
Demand-Pull Scheduling (AKA Just-in-time):
As used herein, “Notification Period” will mean that period of time from when BUYER initiates a change and when it must be implemented by SUPPLIER and will be specified on Blanket Orders by BUYER on the face of the Order.
As used herein, “Inventory Holding Period” will mean that period of time from when BUYER becomes liable for Product as specified in Section (d) below and when the Product must be released for delivery by BUYER.
Forecast and Release for Blanket Order Agreements. This clause is applicable only to Blanket Orders, as specified on the face of the Order.
(a) BUYER, or BUYER’s Manufacturing Partner, will, using reasonable efforts, provide SUPPLIER on a weekly basis, (but in no event less than monthly), a written Forecast and Release (the “SURF Report”), which will contain a rolling forecast of anticipated Product needs. The SURF Report will include a weekly forecast for the first thirteen (13) weeks of such forecast, and five (5) week forecasts thereafter. BUYER will report any significant changes to the forecast to SUPPLIER without delay. No such forecast will be binding on BUYER except as defined in Section (b), (c), and (d).
(b) The SURF Report will also contain a firm and binding commitment as to quantity of Product (the “Release”), provided SUPPLIER confirms within forty-eight (48) hours its ability to deliver such Release on the date specified on the SURF Report. In no event will BUYER be committed to volumes in excess of those confirmed by SUPPLIER.
(c) SUPPLIER will accept, in accordance with these Terms and Conditions, any Release issued hereunder. These Terms and Conditions will continue to apply to all Releases issued under this Order until all obligations herein are performed. SUPPLIER agrees that BUYER may increase the quantity contained in a Release by up to 100% on notice to SUPPLIER, such notice not to be less than the Notification Period and SUPPLIER agrees to deliver the revised quantity in accordance with the requested delivery schedule.
(d) BUYER will be liable for the cost of all Products built by SUPPLIER in support of the SURF Report, limited to BUYER’s requirements within the Notification Period. In the event that Product is forecasted within the Notification Period and BUYER does not release delivery of Products within the Inventory Holding Period from the date that the Product is initially forecasted, SUPPLIER may ship and invoice and BUYER will pay on normal terms for the Products.