Question
Mr. Tan forecasted that the demand for his goods was 1200 units a month for Off peak period such as October. The forecasted demand for
Mr. Tan forecasted that the demand for his goods was 1200 units a month for Off peak period such as October. The forecasted demand for the Peak period such as December was 40% more then October. Mr Tan would usually stock up extra unite of goods based on the forecasted monthly demand and the amount of the extra unite of goods bring stocked up is represented by the following equation : Q= 100 + 30P - 0.01T Where Q is the extra units of goods stocked up in a month P=0 (if no price Promotions) or P=1 (if there is price Promotions) and T is the monthly forecasted demand in the off peak period
(i) Calculate the forecasted demand for December
(ii) Calculate the extra units of goods that Mr Tan will set aside to meet the demand for the month of october and december if he conducted a price promotion for his goods only for the month of december
(iii) calculate the total amount of goods that Mr.Tan stocked up for October and December
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