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Subscribe and click the bell icon to watch more videos. Contracts are created through logistics, material management, purchasing, and outline agreements. Vendors use contracts and scheduling agreements to negotiate with customers. Scheduling agreements are specific to certain industries, while contracts are the primary tool. Focus will be on contracts in this chapter. Create a contract with vendor 4001 for a quantity contract. Select the agreement type to specify the details of the contract. Choose the right terms for delivering 50,000 pounds of coffee at $9 per pound.