MOQ Calculator
Compare discount savings against inventory holding and storage costs to decide if you should meet a supplier's MOQ.
Standard Purchase Scenario
Discounted MOQ Scenario
Logistics & Sales Rate
🟢 Recommendation: Meet MOQ
Meeting the MOQ of 1000 units yields a net financial benefit of $1500.00! The purchase price savings ($3500.00) easily offsets the additional inventory holding carrying cost ($2000.00).
Supply Velocity & Holding Cost Analysis
Standard Qty supply duration: 2.5 months
Estimated standard stock holding cost: $83.33
MOQ Qty supply duration: 12.5 months
Estimated MOQ stock holding cost: $2083.33
Business examples
- Evaluate a bulk 10% discount with a 500-unit MOQ
- Determine storage holding penalties on excessive order sizes
- Compare standard purchase orders with high MOQ volume discounts
How to use it
- Enter your standard order size, regular unit cost, and estimated monthly sales velocity.
- Enter the MOQ threshold, the discounted unit cost, and your storage/holding cost per unit per year.
- Analyze the dynamic outcome chart and recommendation detailing the Net Benefit/Loss.
FAQ
What is MOQ?
MOQ stands for Minimum Order Quantity. It is the minimum number of units a supplier is willing to sell in a single order.
What is holding cost?
Holding cost represents all storage, insurance, capital cost, and obsolescence costs of keeping one unit in stock for a full year.
Why is inventory holding cost important?
Buying more units saves money on unit price, but locks up capital and costs storage, which can easily erase any purchase savings.