What is minimum order quantity (MOQ)?
Minimum order quantities or MOQs are the minimum order size that the supplier is willing to accept. This is often expressed as the minimum number of units. However, suppliers may also set the minimum order quantity in order value. For example, Supplier ABC Ltd will only accept an order above $1000.
As a major constraint, it’s essential that the minimum order quantity for each product is up to date and correct in the master data. If it is not, this could lead to costly mistakes or avoidable delays when placing the purchase order.