Minimum Quantity Order

Minimum Quantity Order (MQO) is an important concept in the business world – it sets a minimum amount of goods that must be ordered before they can be considered a valid purchase. The idea behind setting a minimum order is to ensure that vendors are able to take full advantage of economies of scale, where larger orders can benefit from lower overall costs. By requiring customers to meet a certain quantity for their purchase, it allows vendors to reduce overhead and pass savings on to their customers. In essence, MQO serves as a way to create mutually beneficial relationships between buyers and sellers.