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• Goods Transportation Demand

The demand for transportation involves likewise the movement of goods from one place to another. This activity is a vital part in the economic system of the country as it supports the production, distribution, and consumption of goods. Goods in this case refer to raw materials and other products which are inputs to the goods production process, as well as finished products which will be distributed to the various consumption centers. The representation of goods transportation demand is also in an OD table form. However, since there are numerous types of goods, the OD tables are as numerous as the number of goods types. Basically, there are two general types of goods, namely agricultural products, and industrial products. For each type, there are numerous specific goods. For example, in the agriculture sector, the various types are food products such as rice, crops, vegetables, aquatic products, and many others. Industrial products are those which are manufactured in factories such as consumer goods (processed foods, household products, beverages), supplies to various work, school, health, and other related socio-economic activities. The main theory in determining goods transport demand is based on the economic principle of production and consumption of goods or commodities. This principle is explained as follows:

o Each place (or zone) produces a certain commodity type. The volume of production is a source of supply for such commodity types;

o Said place also consumes that commodity. Volume of consumption depends on the population of that place and the consumption rate;

o For each place, the net demand for said commodity is volume of production minus volume of consumption.