CHINHOYI UNIVERSITY OF TECHNOLOGY

BSC (HONS) DEGREE IN SUPPLY CHAIN MANAGEMENT

COURSE: TRANSPORT PLANNING AND INVESTMENT (CUSCM217)

Assignment Task One: Group Assignment

Due Date: 12 November 2021

QUESTION 1

a. Explain the five (5) stages of choosing a project using the Cost Benefit Analysis.

(10 marks)

b. The Ministry of Transport is considering five (5) alternative projects (A to E) for

expanding a highway. The following table shows the costs and benefits of each

alternative:

Project A B C D E

Cost (million $) 800 600 900 1500 800

Benefits (Million $) 600 350 1 050 1500 750

i. What is the cost benefit ratio of each project? (5 marks)

ii. Explain the alternative you would recommend for implementation to the Ministry

and why. (3 marks)

 iii. Why are user costs important in the determination of transport supply?

(2

marks)

C Explain what is meant by the following terms as they are used in transport demand
and supply forecasting?
(i) Delphi forecasting. (2 marks)
(ii) Regression analysis. (2 marks)
(iii) Exponential smoothing. (2 marks)

QUESTION 2

a. Explain any three (3) importance of forecasting transport demand. (6 marks)

b. Consider the following information for transport maintenance cost and age of the

vehicle for a certain transport company.

Age of the vehicle(X) Maintenance cost(Y)

(Years) ($)

5 310

3 250

2 100

5 450

2 150

3 210

4 325

3 250

2 145
 6 460

(i) Using the least squares method, estimate the regression equation.(10 marks)

(ii) Interpret the regression coefficients. (2 marks)

(iii) Estimate the maintenance cost of a 7 year old car assuming that the
maintenance cost of the vehicle depends on the age of the car. (2 marks)