Minimum Order Quantity

A minimum order quantity, or MOQ, is the smallest quantity a manufacturer will produce or accept as an order. In chemical contract manufacturing it is usually expressed as a batch size, and it is one of the first things that determines whether a manufacturer is a realistic option for you.

MOQs exist because a significant part of production cost is fixed per batch rather than per unit. Charging materials, setting up, cleaning down afterwards and running quality tests take broadly the same time whether the vessel is filled or a quarter full - and vessels have a practical minimum working volume below which mixing and temperature control stop being reliable. A batch too small for the vessel is not merely uneconomic; it may not be manufacturable to specification.

This is why unit price rises sharply as batch size falls, and why a manufacturer with large vessels may decline small work rather than quote heavily for it. Manufacturers with smaller plant, or with dedicated small-scale capability, are usually the better route for modest volumes - see flexible batch sizes and short production runs.

There is often more negotiating room than the initial figure suggests, particularly where you can commit to repeat volume or accept scheduling flexibility - see agreeing minimum order quantities.

Where a stated MOQ is too large, ask what drives it - vessel size, changeover cost or scheduling. If it is scheduling, there is often room to move by accepting flexible timing. If it is minimum working volume in the vessel, there usually is not, and a different manufacturer is the answer.

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