MOQ, or Minimum Order Quantity, refers to the lowest quantity of a certain product that a supplier is willing to sell. Suppliers set MOQs to ensure that the production and sale of small quantities do not lead to a financial loss. This is particularly common in manufacturing and wholesale businesses where producing or procuring small quantities can be inefficient or costly. For businesses, understanding and negotiating MOQs is crucial, as it affects inventory costs and pricing strategy. MOQs are a key consideration in supply chain management, influencing decisions about suppliers, inventory levels, and budget allocations.