EAU

Related terms

RFQ

An RFQ is a request for quotation, the package a buyer sends suppliers to get prices for a specific part. A complete RFQ includes a 3D model, 2D drawing, material, finish, annual volume, release quantities, and required certifications. Missing details lead to padded or non-comparable quotes.

MOQ

MOQ is minimum order quantity, the smallest run a supplier will accept for a part. It is set by setup time, material minimums such as a full coil or bag of resin, and finishing lot charges. Below the MOQ, the piece price rises steeply or the supplier declines the order.

Blanket PO

A blanket PO is a purchase order that commits to a total quantity or dollar amount over a set period, usually 12 months, with releases issued against it as parts are needed. It gives the supplier volume visibility for material buys and gives the buyer fixed pricing.

Amortized tooling

Amortized tooling is tooling whose cost is spread across the piece price of a set quantity of parts instead of being paid up front. It lowers initial cash outlay, but the buyer usually pays a financing markup, and the terms must state what is owed if volume falls short.