What is a MOQ (Minimum Order Quantity)?

A MOQ, or Minimum Order Quantity, is the minimum number of units a supplier agrees to sell in a single order (or that a buyer commits to purchasing). For example, if a supplier sets an MOQ of 100 units, every order must include at least 100 units of that product.

This concept is important in supply chain management because it affects purchasing or production batch sizes, inventory levels, and unit costs (larger orders often enable better pricing).

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