What is MOQ?
MOQ stands for minimum order quantity, the smallest quantity a supplier accepts per order or variant. MOQs can exceed the economically sensible order quantity and create tied-up capital or overstock, so they must be included in procurement planning.
Practical example
Demand is 350 units but the supplier requires 500. The team evaluates carrying cost, order consolidation, and an MOQ negotiation.
What teams should remember
- MOQ stands for minimum order quantity, the smallest quantity a supplier accepts per order or variant.
- MOQs can exceed the economically sensible order quantity and create tied-up capital or overstock, so they must be included in procurement planning.