The vendor sometimes determines what the minimum quantity of an order for a certain item shall be. Such minimum quantity can be determined by transport packaging or size of the series produced by the vendor. Such determination or restriction is not a problem for products that are selling well, but when we want to order some less attractive item, we could face with the order size that we actually do not need or that covers even annual need for that product or raw material.
As usual, the tactics to solve this limitation is determined by the actual underlying cause. We have mentioned three main reasons for this vendor’s limitation: transport policy, transport costs and the size of production lot.
