Minimum Order Quantities relating to overhead costs are the minimum value of orders you can place to cover a manufacturer's fixed costs, like labor, utilities, and equipment depreciation.
It contributes to ensuring that the production run is economically sustainable from the factory’s perspective. Low order value won't cover the overhead costs, even if the material or production minimum order quantities are satisfied.
This type of minimum order quantity considers the full value of the order, and not just the amount of product. It ensures that production efficiency is maintained while ensuring that the business makes a profit.