MOQ

Related terms

EAU

EAU is estimated annual usage, the number of parts a buyer expects to order in a year. Suppliers use EAU to choose the process, tooling, cavity count, and material buys, so it moves the quote more than almost any other RFQ field. Overstated EAUs lead to overbuilt tooling and disputes.

Setup

Setup is the work needed to prepare a machine to run a specific part: loading tooling, fixtures, and programs, then running and inspecting first pieces. Setup cost is fixed per run, so it is spread over the lot size and is a main driver of MOQ.

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.