, TRL4861 Assignment 2
Semester 2 2025
DUE September 2025
Use this document as a guide and for references to answer your assignment
Demand Forecasting vs Quantitative Forecasting: Definitions and
Fundamental Differences in rural KwaZulu-Natal
Before applying specific methods, it is essential to distinguish between demand
forecasting methods in general and quantitative forecasting methods in
particular.
Demand forecasting refers broadly to the process of estimating the future
demand for a product or service. It encompasses both qualitative and
quantitative approaches, and may use both subjective judgment (expert
opinion, market surveys, scenario analysis, etc.) and data‐driven models. It
takes into account many factors: economic trends, demographics,
competition, policies, etc.
Quantitative forecasting is a subset of demand forecasting. It involves using
numerical data and mathematical/statistical models to predict future demand.
These models use historical data (sales, shipments, economic indicators) and
often assume patterns (trend, seasonality, autocorrelation). Quantitative
methods are typically more rigorous, replicable, and require data availability.
So the fundamental differences:
Aspect Demand forecasting Quantitative forecasting
(general)
Data source May include qualitative inputs: Relies primarily (or solely)
expert opinion, market studies, on historical numerical data
customer surveys, etc.
Nature of method Broader: includes qualitative, Narrower: statistical, time
judgment, scenario, Delphi etc. series models, causal models,
etc.
Applicability Useful when there is little or Less reliable or feasible
when data are no historical data (e.g. new when historical data are
sparse product, new region) limited or of poor quality
Transparency / More subjective, relies on More objective (assuming
Semester 2 2025
DUE September 2025
Use this document as a guide and for references to answer your assignment
Demand Forecasting vs Quantitative Forecasting: Definitions and
Fundamental Differences in rural KwaZulu-Natal
Before applying specific methods, it is essential to distinguish between demand
forecasting methods in general and quantitative forecasting methods in
particular.
Demand forecasting refers broadly to the process of estimating the future
demand for a product or service. It encompasses both qualitative and
quantitative approaches, and may use both subjective judgment (expert
opinion, market surveys, scenario analysis, etc.) and data‐driven models. It
takes into account many factors: economic trends, demographics,
competition, policies, etc.
Quantitative forecasting is a subset of demand forecasting. It involves using
numerical data and mathematical/statistical models to predict future demand.
These models use historical data (sales, shipments, economic indicators) and
often assume patterns (trend, seasonality, autocorrelation). Quantitative
methods are typically more rigorous, replicable, and require data availability.
So the fundamental differences:
Aspect Demand forecasting Quantitative forecasting
(general)
Data source May include qualitative inputs: Relies primarily (or solely)
expert opinion, market studies, on historical numerical data
customer surveys, etc.
Nature of method Broader: includes qualitative, Narrower: statistical, time
judgment, scenario, Delphi etc. series models, causal models,
etc.
Applicability Useful when there is little or Less reliable or feasible
when data are no historical data (e.g. new when historical data are
sparse product, new region) limited or of poor quality
Transparency / More subjective, relies on More objective (assuming
