MTH203_Tutorial Questions_Week 71. The manager of the Carpet City outlet needs to make an accurate forecast of the demand forSoft Shag carpet. If the manager does not order enough carpet from the carpet mill,customers will buy their carpets from one of Carpet City’s competitors. The manager hascollected the following demand data for the past 8 mo

Calculate the numerical value of the quantity asked.For a carpet manufacturer, the estimated annual demand is 20,000 yards of carpet with an annual carrying cost of $2.75 per yard. The manufacturing facility operates for 360 days and produces 400 yards of carpet per day. The cost of setting up the manufacturing process is $720. Determine the optimal order size. (answer should be correct to one decimal place)

Carpet Woes. Beau went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Carpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months. Two months later Beau went back to ABC Carpet to purchase the carpet. Unfortunately, the price had gone up. Beau showed the manager his writing and guaranteed price, but the manager said that the offer was no longer good. Although he had to pay more than the ABC manager had initially promised, Beau proceeded to purchase his carpet from ABC Carpet, and he also contracted with ABC to do the installation. Unfortunately, Beau almost immediately started to have problems with the carpet. Beau told the sales manager of ABC Carpet that he was planning on bringing suit for breach of warranty. The sales manager, however, told him that the breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation, a service. Which of the following is true regarding whether the Uniform Commercial Code (UCC) applies to the contract Beau had with ABC Carpet?Multiple ChoiceCommon law applies, not the UCC, because the contract involves a mixed sale.The UCC applies, not common law, because the contract involves a mixed sale.The court will determine if the predominant purpose of the contract was for the sale of goods, and if it was, the UCC applies.The court will apply the "service-warranty" test to determine if the predominant purpose of the contract was for the provision of a service, and if it was, the UCC applies.The court will apply the "service-warranty" test to determine if the predominant purpose of the contract was for the sale of goods, and if it was, the UCC applies.

Assumptions:Carpet cleaning always occurs in the spring.The largest shops get their carpets cleaned every year.Shop 324 is the largest shop in the company.Conclusion:Shop 324 will have its carpet cleaned this spring.If the assumptions are true, is the conclusion:Correct Cannot be determined based on the information available Incorrect

demand forecasting

Significance of Demand Forecasting