General Description of New Items
1. New Items are items with less than 12 months of sales history.
2. New Items forecasts are identical to other items.
3. The only difference is that in the first months of a New Item's sales history
-- F1 = Q1: on the average what we sold in the last 3 months times the seasonal curve.
-- results in more conservative forecasts of New Items in months 1 and 2.
4. Many companies have problems with pipe line fill in the early stages of an item's life.
5. Focus Forecasting® has PREVENT PIPELINE FILLING to eliminate these problems.
6. PREVENT PIPELINE FILLING works like this :
-- F21 = 12(M1) : 12 times the current month's sales.
7. Here is the selection rule :
-- If PREVENT PIPELINE FILLING = 1 in the FFCFG.TXT
-- and F1 = Q1 is > than F21 = 12(M1)
-- and the on hand is > 0 :
-- then the New Item forecast is F21 = 12(M1):

Technical Description of Pipe Line Filling Forecast
1. The normal new item forecast for this item would be 1302 for the year , however :
2. *PREVENT PIPELINE FILLING*1*@ in FFCFG.TXT is set to a 1
3. F1 = Q1 = 20 which is > than 12(M1) which = 12.
4. On Hand = 158 which is > 0
5. So the forecast for this item is 12(M1) = 12.