What is historical ordered quantity in SAP SCM-IBP - Integrated Business Planning?

SAP Term: historical ordered quantity

• Component: SCM-IBP

• Component Name: Integrated Business Planning

• Description: The quantity of items in confirmed or unconfirmed sales orders or stock transport orders that were not delivered by a requested date in the past.

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• Key Concepts: 
  Historical Ordered Quantity (HOQ) is a key metric used in Integrated Business Planning (IBP) to measure the amount of goods that have been ordered in the past. It is used to forecast future demand and to help plan inventory levels. HOQ is calculated by taking the total amount of goods ordered over a certain period of time and dividing it by the number of days in that period. 
  
  How to use it: 
  HOQ can be used to help plan inventory levels and forecast future demand. It can also be used to identify trends in customer demand and to adjust production schedules accordingly. Additionally, HOQ can be used to identify potential problems with supply chain management, such as overstocking or understocking. 
  
  Tips & Tricks: 
  When using HOQ, it is important to consider the time period for which the data is being collected. For example, if you are looking at HOQ for a particular product over a one-year period, it may be more useful to look at the data on a monthly basis rather than an annual basis. Additionally, it is important to consider any seasonal fluctuations in demand when interpreting HOQ data. 
  
  Related Information: 
  HOQ is closely related to other metrics such as inventory turnover rate and average order size. Additionally, HOQ can be used in conjunction with other forecasting methods such as time series analysis or regression analysis.