Minimum order quantity, or MOQ, is the smallest quantity a supplier agrees to sell in one order or production run. It may reflect manufacturing setup, packaging, freight, or handling economics and can affect inventory, cash flow, and the buyer's effective unit cost.
Quick reference for Minimum order quantity (MOQ)
| Check | What it means for the transaction |
|---|---|
| Category | Pricing and profitability |
| Record to keep | Record the cost basis, currency, quantity, customer scope, effective period and approval behind the amount when they apply. |
| Do not infer | A price label alone does not establish margin, landed cost or the final invoiced amount. |
Minimum order quantity (MOQ) and nearby terms
- Quantity discount: A quantity discount reduces the price when a buyer purchases a defined volume.
