A factory’s minimum order quantity tells you the smallest order it is willing to accept. It does not tell you how many cooking robots your business can sell before the stock becomes a burden.
The two quantities come from different economics. The supplier may need a production run large enough to spread setup work or consume a purchased batch of packaging. Your concern is how long the resulting stock will occupy cash.
The same minimum can mean very different exposure
Hypothetical example — figures illustrate the calculation only; they are not our quotation or market prices.
Assume a supplier’s MOQ is 500 units. At an assumed sales rate of 100 units a month, that order represents five months of supply. At an assumed 40 units a month, it represents 12.5 months. These are constant-sales scenarios, not demand forecasts; they ignore replenishment and any stock already on hand.
The supplier sees the same workable production run in both cases. The buyer sees either a relatively short sales cycle or a commitment extending beyond a year. A small reduction in unit price does not remove that difference: every extra unsold unit still has to be financed.
A delivery schedule does not necessarily shrink the commitment
It can help to distinguish a production minimum from a delivery quantity. A supplier may agree to manufacture one batch and ship it in smaller releases. That can reduce the stock physically occupying your warehouse, but it does not reduce your exposure if you must still buy and pay for the entire batch.
This matters most at launch, when a sales estimate is least tested. A precise-looking order calculation cannot repair an unsupported demand assumption. If the MOQ only looks manageable under the optimistic sales case, the proposed order depends on that optimism; it has not become economical merely because the supplier will accept it.
Divide the quoted MOQ by your conservative monthly sales estimate and write the resulting months of supply next to the order quantity before approving it.