Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
Minimum Order Quantity (MOQ)
The smallest quantity of a product that a supplier is willing to sell in a single order.
Definition
MOQ helps suppliers ensure cost-effectiveness in production, reduce handling costs, and maintain profit margins.
Overview
Minimum order quantity is a critical consideration for inventory planning, purchasing, and supplier negotiations.
Role
The smallest quantity of a product that a supplier is willing to sell in a single order.
Focus
Minimum order quantity is a critical consideration for inventory planning, purchasing, and supplier negotiations.
Example
A textile supplier sets an MOQ of 500 meters for fabric rolls, meaning buyers must purchase at least this amount per order.
FAQs
Q: Can you give an example of Minimum Order Quantity (MOQ)?
A: A textile supplier sets an MOQ of 500 meters for fabric rolls, meaning buyers must purchase at least this amount per order.