When Is a Low-MOQ Factory More Expensive Overall?

When Is a Low-MOQ Factory More Expensive Overall?

Low MOQ can cost more overall when development, logistics, and repeat-order charges are high.

A lower initial commitment is useful only when the complete economics remain workable. Compare development charges, surplus materials, unit price, storage, and replenishment terms together; buying additional units solely for a lower price can increase exposure to unsold inventory. Compare landed cost at realistic replenishment volumes.