TRL4861 ASSIGNMENT 2 You are planning to establish a road freight business specialising in transporting building materials to rural areas of KwaZulu-Natal (KZN). To forecast demand for building materials in these regions for the years 2025 and 2026, apply

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THE BMZ ACADEMY




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Table of Contents

Demand and Quantitative Forecasting for Building Materials in Rural KwaZulu-Natal:
Implications for a Road Freight Business ................................................................... 4

Introduction ................................................................................................................ 4

Fundamental Differences Between Demand Forecasting and Quantitative Forecasting
................................................................................................................................... 4

The Relationship Between Demand Forecasting and Quantitative Forecasting ......... 5

Five Demand Forecasting Methods Applied to the Case ........................................... 6

Survey of Buyers’ Intentions ....................................................................................... 6

Expert Opinion (Delphi Method) ................................................................................. 6

Market Research Method ........................................................................................... 6

Sales Force Composite .............................................................................................. 6

Historical Analogue Method ....................................................................................... 7

Moving Averages ....................................................................................................... 7

Exponential Smoothing .............................................................................................. 7

Trend Projection ......................................................................................................... 7

Econometric Modelling ............................................................................................... 8

Suitability of Forecasting Methods for the Road Freight Business ............................. 8

Conclusion ................................................................................................................. 8

References ............................................................................................................... 10



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