KEVOS® WORKOS · Quoting
Minimum Order Quantity Check
What does the supplier MOQ do to your inventory economics?
Shows how many months of demand a supplier’s minimum order quantity represents, the cash it ties up and its holding cost, and checks shelf life.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Minimum order quantity | units | Supplier’s minimum order quantity |
| Expected monthly demand | units | Expected monthly usage |
| Unit purchase cost | $ | Unit purchase price |
| Annual carrying cost rate | % | Annual carrying-cost rate from finance |
| Shelf life or obsolescence horizon (0 = not limited) | months | Shelf life or obsolescence horizon (0 if not limited) |
Method and formulas
- Months of stock = MOQ ÷ monthly demand
- Holding cost = (MOQ value ÷ 2) × carrying rate × months ÷ 12 (stock consumed evenly)
Limitations
- Even consumption assumed
- Price breaks are not modelled
Typical uses
- Negotiating MOQs
- Approving large one-off buys
Who it is for
- Purchasing staff
- Inventory planners
What you get
- Months of stock
- Value tied up and holding cost while consumed
- Shelf-life check
Interpreting the result
- More than about six months of stock warrants negotiation or call-off terms
WORKOS tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.
