What is the full form of MOQ?
- on Jun 16, 2022
MOQ stands for Minimum Order Quantity.
|Full Form||Minimum Order Quantity|
|Category||Business » Business Terms|
What is MOQ?
A minimum order quantity (MOQ) is a requirement for certain businesses that allows them to sell products only to those who have ordered a set amount. This helps to keep the inventory levels low, which allows businesses to run more efficiently.
The purpose of a MOQ is to prevent over-production and ensure that the products that are being sold are of high quality. It also helps to protect businesses from having too much inventory on hand, which can lead to price decreases and lower profits.
There are many different types of businesses that may require a MOQ. Retail stores, for example, often have a MOQ requirement for clothing items. This is because it is important for retailers to be able to accurately estimate how many items will be sold.
When setting a MOQ, businesses should take into account several factors. These include the type of product being sold, the size of the market for that product, and the manufacturing process involved in producing the product.