MOQ
Category: Procurement
Definition (plain English)
Minimum order quantity is the smallest order volume, value, carton count, pallet count, or production batch a supplier will accept for a given price or specification.
Why it matters commercially
MOQ drives cash tied up in stock, storage, shelf-life exposure, slow-moving inventory risk, and whether a low unit price is commercially worth taking.
Example
A supplier offered a 9% lower unit price only at a 20-pallet MOQ, which exceeded six months of forecast demand and created markdown risk.
Common mistake
Negotiating unit price without modeling MOQ against sell-through, shelf life, storage cost, working capital, and customer order commitments.
Use this in CommerceKit
Target Buy Price Calculator
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Use tool →MOQ & Shelf Life
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