Minimum order quantity

A minimum order quantity, or MOQ, is the smallest amount a supplier will accept on an order, applied either to the order as a whole, to each product line, or as a pack multiple.

Setting one from your own numbers

An MOQ exists to cover the fixed cost of serving an order: picking, packing, paperwork, the drive and the invoice. Start there rather than from a round number.

If a delivery costs you 40 to serve and you make a 40% gross margin, the order has to reach 100 in item value before the trip breaks even. Below that you are paying to supply.

The three shapes, which are not interchangeable

Minimum order value. A floor on the whole order, and the one that actually covers a delivery.
Per-line minimum. A floor on each product ordered. A per-line minimum of 12 across a range of 20 products is a far larger commitment than an order minimum of 12 units.
Pack or case multiple. Orders round up to a whole case, which is a production constraint rather than a commercial one.

They stack. A customer can meet your order value and still fail a per-line minimum, so state all of them on the price list.

Buying side: a supplier MOQ above your usage rate is a shelf life problem before it is a cash one. See par level.

Minimum order quantity