How to Calculate Minimum Order Quantity
What is Minimum Order Quantity?
Minimum Order Quantity Calculator helps logistics and supply chain professionals optimize operations and reduce costs.
Formula
Break-even MOQ = Fixed Order Cost / (Unit Price - Unit Variable Cost)
Step-by-Step Guide
- 1Calculate the minimum quantity where ordering makes economic sense
- 2Apply the formula with your specific values
- 3Use the result to optimize operations or costs
Worked Examples
Input
$200 order cost, $10 unit price, $6 variable cost
Result
MOQ = 200/(10-6) = 50 units
Common Mistakes to Avoid
- ✕Using incorrect units or dimensions in the calculation
- ✕Ignoring surcharges and accessorial fees
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