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Is a supplier minimum creating more stock than you can use?
Compare the minimum order with expected demand inside the product’s usable life.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Supplier minimum order units
- 20,000
- Expected monthly demand
- 2,000
- Usable selling life after receipt
- 6 months
- Landed cash cost / unit
- $8
- Net salvage proceeds / excess unit
- $1
Cash at risk in excess minimum order
Example result only, not a forecast or promise.
- Excess units beyond usable demand
- 8,000
- Upfront MOQ cash required
- $160,000
- Months of demand in MOQ
- 10 months
What to do with this result
Negotiate scheduled releases, shared stock or a smaller-lot premium before accepting an apparently cheap MOQ price.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Excess units = max(0, MOQ − monthly demand × usable life). Expected excess loss = excess units × (unit cost − salvage).
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Demand, lead times and service levels are scenario inputs. Validate variability, physical constraints and supplier terms before ordering.