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The smallest amount of a product that a supplier is willing to sell or that a business agrees to buy in a single order is known as the minimum order quantity. MOQs have an effect on carrying costs, procurement frequency, and inventory levels. MOQs are frequently set by suppliers to increase production efficiency and cut costs, and buyers are required to adjust cash flow and inventory management accordingly. In order to maximize inventory investment and flexibility, negotiating MOQs can be crucial.  

 

 

 

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Minimum Order Quantity (MOQ)