, TRL4861 Assignment 2 (COMPLETE ANSWERS) 2025
- DUE September 2025; 100% correct solutions and
explanations.
Forecasting Demand for a Road Freight Business Transporting Building
Materials in Rural KwaZulu-Natal
1. Introduction
Forecasting is a vital management tool in logistics and transport planning. It
helps businesses anticipate future demand, allocate resources, reduce risks,
and enhance decision-making. For a road freight business specialising in
transporting building materials to rural areas of KwaZulu-Natal (KZN),
forecasting demand is particularly important given the volatility of the
construction industry, seasonal building cycles, and the influence of
government housing and infrastructure projects. Reliable forecasts will
enable the business to plan its fleet size, optimise routes, manage costs, and
ensure that it meets customer needs effectively in 2025 and 2026.
This essay applies five demand forecasting methods and five quantitative
forecasting methods to estimate demand. It begins by explaining the
differences between demand forecasting and quantitative forecasting,
analyses their relationship, and then identifies the most suitable approaches
for the case of rural road freight transport in KZN.
2. Differences Between Demand Forecasting and Quantitative
Forecasting
2.1 Demand Forecasting
Demand forecasting refers to qualitative methods that rely on judgment,
expert opinion, and market insights rather than purely numerical data
(Makridakis et al., 2020). These approaches are most useful when historical
data is scarce, incomplete, or unreliable. For example, when expanding into
rural KZN where historical demand data for building materials might not be
- DUE September 2025; 100% correct solutions and
explanations.
Forecasting Demand for a Road Freight Business Transporting Building
Materials in Rural KwaZulu-Natal
1. Introduction
Forecasting is a vital management tool in logistics and transport planning. It
helps businesses anticipate future demand, allocate resources, reduce risks,
and enhance decision-making. For a road freight business specialising in
transporting building materials to rural areas of KwaZulu-Natal (KZN),
forecasting demand is particularly important given the volatility of the
construction industry, seasonal building cycles, and the influence of
government housing and infrastructure projects. Reliable forecasts will
enable the business to plan its fleet size, optimise routes, manage costs, and
ensure that it meets customer needs effectively in 2025 and 2026.
This essay applies five demand forecasting methods and five quantitative
forecasting methods to estimate demand. It begins by explaining the
differences between demand forecasting and quantitative forecasting,
analyses their relationship, and then identifies the most suitable approaches
for the case of rural road freight transport in KZN.
2. Differences Between Demand Forecasting and Quantitative
Forecasting
2.1 Demand Forecasting
Demand forecasting refers to qualitative methods that rely on judgment,
expert opinion, and market insights rather than purely numerical data
(Makridakis et al., 2020). These approaches are most useful when historical
data is scarce, incomplete, or unreliable. For example, when expanding into
rural KZN where historical demand data for building materials might not be
