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MBQ (Minimum Base Quantity)

Definition: The Minimum/Maximum Quantity of a SKU at stores shelves or at warehouse at any given point of time.

Benefits of MBQ in retail 1) Reduce Out of Stock situation and thus improve sale 2) Optimize shelve space (Improve sales/net profit per sq ft) 3) Improve replenishment of the SKU 4) superior visual appealing shelves

Factors Involve in setting MBQ 1) Historical sales data (Average sales quantity/value of the SKU) 2) Store specific space availability/constraints 3) Replenishment lead time 4) Merchandise display guidelines /technique