Issue #004 — MOQ math: cash vs margin

Lower unit cost can quietly torpedo cash. Make MOQs obey DOH and CCC—and still lift GM.

The trade-off. Bigger MOQ = ↓ unit cost = ↑ inventory carrying cost and risk. Anchor to your days-of-inventory policy and cash conversion cycle.

• The quick model. Compare:
  Unit GM$ lift = (old LC − new LC) vs. Carrying cost = inv_value × annual_rate × (DOH/365)
  Approve only if GM$ lift ≥ carrying cost + risk buffer.

• Negotiation angles besides MOQ. Payment terms, price-break curves, shared tooling, replenishment cadence, and consignment/VMI.

• When to say no. MOQ pushes DOH beyond policy, or cash tied > your buffer.

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