Vocabulary · Volume 1 and Volume 2

Take-or-pay

A commitment charged for the committed quantity whether or not it is used. In Volume II, Chapter 20's illustration, $7 per unit committed against $10 bought as needed breaks even at 70 percent use.

The definition appears in the Volume 1 glossary and Volume 2 glossary. This page collects where the book uses the term and where the blog takes it up.