Explainer

Minimum order quantities

A minimum order quantity is the smallest run a factory will accept, and it is one of the least discussed causes of excess inventory in apparel. Buyers do not always overbuy because they are optimistic. Sometimes they overbuy because 3,000 units is the smallest number available.

By The Retail Ledger · September 27, 2026

Why minimums exist

Setup costs are largely fixed per style and per color: pattern making, marker making, machine setup, fabric dyeing in minimum lot sizes. A short run carries the same setup as a long one, so the factory prices in a floor. Fabric minimums usually sit underneath and are the harder constraint.

This is why minimums are often quoted per color rather than per style: the dye lot, not the sewing line, is doing the limiting.

How MOQs create surplus

A buyer that needs 1,200 units and faces a 3,000 unit minimum has three options: skip the style, buy 3,000, or find a way around. Many take the second, and the extra 1,800 units are surplus created at the moment of ordering, before a single customer has declined to buy them.

Across an assortment, small overages of this kind aggregate into a meaningful share of what eventually reaches the clearance channel.

Ways around

Sharing a fabric minimum across several styles in the same base cloth; consolidating colors; using a stock fabric program where the mill holds the inventory; and aggregating orders across regions or banners. All of them trade some flexibility for a lower floor, and all of them require planning earlier than most calendars allow.

Questions

What is an MOQ?

The minimum quantity a supplier will produce, usually set per style and per color.

Why are minimums often per color?

Because fabric dye lots have their own minimums, and the dye lot is frequently the binding constraint rather than the sewing line.

How do MOQs cause excess inventory?

They force a buyer who needs a small quantity to commit a larger one, creating surplus at the point of order.

Related: lead times.