2

I believe it should be made when we add an item in cart, but I need to find code in Magento core where quote ID is generated and an object is made and similarly in the DB.

3

Yes, the quote is created as soon as you interact with the cart for the first time in your current session.

In the code, the object gets created in Mage_Checkout_Model_Session::getQuote(), if no quote id is stored in the session yet:

 $quote = Mage::getModel('sales/quote')->setStoreId(Mage::app()->getStore()->getId());

and saved to the database in Mage_Checkout_Model_Cart::save()

2

Most probably you are looking for app/code/core/Mage/Checkout/Model/Cart.php -> public function save() -> lines:

$this->getQuote()->save();
$this->getCheckoutSession()->setQuoteId($this->getQuote()->getId());

which calls app/code/core/Mage/Sales/Model/Quote.php -> public function save().

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