I have come across this acronym a couple of times on this forum and wonder what exactly it means. I would appreciate any help with explanations.

Replying to [Rentar]:

MOQ = Minimum Order Quanitity, the minimum pieces that a
supplier will allow you to purchase.

Check the acronyms at the top of the page or do a forum search for MOQ....next time you can find it yourself....its easy!


(Don't answer this question over and over and over again here unless you have something new to add)


Hope it helps
Robby

Replying to [Rizzob]:

Thanks Robby! Very helpful!

Replying to [Rentar]:

MOQ - Minimum Order Quantity.

This plays a major role in purchasing.


You need 75 numbers of some item. But the supplier sells the same in a pack of 100, as the supplier will find it difficult to sell in smaller quantities. This also depends on the production too.


So, even if you need 75, you will be forced to buy 100.


Some times you need to take a strategic decision, to order more take advantage of the slab rates offered.


If a supplier says

1-99 - US $ 5

100-199 - US $ 4.50

If you are likely to get more orders, it is economical to buy more quantity to leverage the reduction in price for higher quantity. This is called EOQ - Economic Order Qquantity.


Let me know if you need more information


Regards


Ramesh

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