MOQ
Minimum order quantity: the smallest quantity a supplier will accept in one order.
What it means in business
A supplier sets an MOQ so that making or shipping the order is worth it, since setup, tooling and freight are fixed costs spread over the quantity. Buying less may be refused or priced higher.
Example
A supplier of castings has an MOQ of 500 pieces. A factory that needs 300 either orders 500 and holds the extra, or pays a higher price per piece for a smaller order. This is an illustration of normal business use rather than a quoted case study.
How to use it correctly
Record each supplier's MOQ in the item or supplier master so it is considered when ordering. Compare the cost of holding the excess with the cost of a smaller, dearer order. Ask whether the MOQ can be shared across items.
Common confusion
An MOQ is a supplier's limit, while a reorder quantity is your own decision about how much to buy. An MOQ is often negotiable for a regular customer.
Related glossary terms
Written on 24 October 2026 for lamp. Confirm the current rules with the official source or an adviser before relying on it.