minimum order quantity formula

minimum order quantity formula is used by manufacturers and suppliers to determine the smallest quantity of a product that a buyer must purchase. The formula is often calculated based on production costs, inventory management considerations, and economies of scale. By calculating the minimum order quantity (MOQ), manufacturers can set a threshold that helps cover their operational costs while allowing businesses to purchase goods at a lower price per unit. MOQ is an important factor for wholesale buyers and e-commerce businesses when negotiating pricing and purchasing large quantities.