Minimum order quantity (MOQ) is the smallest quantity of a product or order that a supplier is willing to sell or deliver. Suppliers may set an MOQ by case, weight, unit count, dollar value or total order value. Restaurants must account for MOQs when planning purchasing, storage and cash flow.
An MOQ can reduce the supplier’s handling and delivery costs, but it may force a restaurant to buy more than it can use before the product loses quality or exceeds its approved shelf life. Larger orders can tie up cash, increase storage requirements and create waste.
The minimum order quantity is the supplier’s minimum requirement. The reorder quantity is the amount the restaurant chooses to purchase based on usage, stock on hand, lead time and par levels. If the required reorder quantity is below the supplier’s MOQ, the restaurant may need to combine orders, negotiate a smaller pack or use another supplier.
Chef’s tip: Compare the delivered cost and usable yield, not just the case price. A low unit price can become expensive if the MOQ creates spoilage or excess inventory.
Key distinction: MOQ is the supplier’s minimum sale or delivery requirement; it is not the restaurant’s target inventory level.
This term is one of hundreds covered in depth across OCS courses, learning paths, and 1-on-1 coaching with Chef Eric.
