Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
College of Engineering
Industrial Engineering Department
Lucban, Quezon
Prepared by:
Cerrudo, Julius Mark V.
Palle, Mark Edison M.
Quiambao, Daryl R.
BSIE-IV-GK
Submitted to:
Engr. Stella Y. Dahilig
Professor
May 7, 2019
I. INTRODUCTION / RATIONALE
As in most Asian countries, rice is the principal and preferred food in the
Philippines. In some islands in the Visayas and Mindanao, where narrow coastal plains
provide little opportunity for cereals, people largely subsist on root crops including
cassava. In many rural communities, root crops are eaten or sold as boiled roots and
representing the main uses of cassava in the Philippines. Namely, food, dried chips for
feed, and starch. As a food crop, demand for cassava is increasing and this trend is
for transforming cassava roots into more stable, convenient and attractive products.
The plant can be grown throughout the year and is known to exist under severe
climates, being particularly suited to conditions of low nutrient availability and able to
survive drought. Its tuber the swollen root of the plant—is the most popular form of
consumption, although the leaves are also consumed at times for medicinal purposes.
vegetable with a variety of uses. Cassava as food is rich in carbohydrates, dietary fiber,
vitamins and minerals. It is also used as a raw material in the manufacture of processed
food, animal feed and industrial products. Among the starchy staples, cassava gives a
carbohydrate production that is about 40% higher than rice and 25% more than maize.
Cassava also consists of essential micronutrients, such as vitamins A, B and C, iron
and Zinc, even though it is considered not having a limited nutritional value.
A. PRODUCT DESCRIPTION
Different varieties range from low herbs to branching shrubs and slender
unbranched trees. Some are planted to dry areas of basic soil and others are found
along river banks. Roots of the plant are starch-rich with small amounts of vitamin C,
phosphorus, and calcium. Proteins and other nutrients are present in unimportant
amounts. However, leaves of cassava are a rich protein source but deficient in certain
In the food industry in the Philippines, cassava provides as the basic ingredients
of cassava cake or budin, Nilupak or Niyubak, Cassava chips and etc. Budin or
Cassava cake is a popular pasalubong in the Philippines. It is one of the most popular
kakanin especially in the provinces. In Quezon, specifically in the town of Tayabas,
there is street called Budin that is literally lined with stores that sell the kakanin, among
other pasalubong.
Product/Process Description
Cassava cake has a golden brown crust with a soft, creamy white honeycomb
crumb. It may be colored with food dyes and dried fruit or nuts may also be
incorporated. The shelf life is several days under correct storage conditions. It is eaten
as a snack or as a dessert.
Process Flow Diagram (Cassava Cake)
Peeling: The weighed cassava roots are peeled manually to reduce high peeling loss
Washing: Peeled root is washed with sufficient quantity of potable water to remove
Mix: Mix milled cassava with other ingredients as follows: 1kg grind cassava, 125g
baking powder, 200g sugar, 250g stock margarine, 6eggs and 1/2litre milk or water to a
smooth paste. Pour mixture in tins greased with margarine to avoid sticking.
Bake: Bake for 10-15 minutes until golden brown at temperatures of 180-200° C.
Pack: Pack in plastic bags to prevent cake absorbing moisture for the atmosphere or
Peeling: The weighed cassava roots are peeled manually to reduce high peeling loss
Washing: Peeled root is washed with sufficient quantity of potable water to remove
Mix: Combine the grated cassava, shredded coconut, condensed milk, salt, and butter.
Place the mixture in a pan: Start to heat the pan and cook the mixture in low to
medium heat for 20 to 25 minutes. Gradually stir the mixture while cooking.
Scoop part of a mixture and place it in a mold: Scoop part of a mixture and place it in
a mold such as a ramekin or small bowl. Drop the molded mixture in a serving plate
Cassava (root crop) as a widely consume product is used by those in line with
the cassava business. Its demand is increasing as times goes by, due to the different
benefits and uses it has. It is not a newly introduced product and widely known in the
market. The researchers gathered the historical data of demand of cassava (root crop)
from the municipal office of Tayabas City for the accuracy of the data for those licensed
―budin” and ―nilupak” vendor in the city. The data that was used was also based from
the stores found at Calle, Budin regarding their annual sales for ―budin‖ and ―nilupak‖
since they are main vendors of the said product in the city. From the information
2,550,000
2,500,000
2,450,000
2,400,000
2,350,000
2,300,000
2,250,000
2015
2016
2017
2018
Year
The data shown above are approximation on actual sales of the cassava (root
crop) of the researchers based on the data gathered from personal interview in each of
the vendor/maker of cassava at Calle Budin. On the other hand, the values are close
Demand is the quantity of a good or service that customers are willing and able
Conditions to be considered include the price of the good in question, prices and
In regards with the factors affecting the demand of cassava (root crop), the
Quantity of Cassava (root crop) Demanded = f(Price of the cassava, income, taste and
preferences)
1. PRICE
The primary factor affecting the demand of the product is its price.
decreases, provided other factors remain constant. Also, as the price decreases,
demand increases. The law of demand introduces an inverse relationship between price
and analyze how the changes in price affects the demand of cassava. Furthermore, it is
used to know the behavior of the customer regarding the changes in the price of the
said product.
2. NON-PRICE
2.1 Income
consumer's income and the amount of the good that one is willing and able to buy. In
other words, for these goods when income rises the demand for the product will
increase; when income falls, the demand for the product will decrease. (Hirschey, 2009)
For those cassava and nilupak maker, they recognize income as a factor
that affects the amount of cassava (root crop) that they are going to purchase. In an
instance, once the price for cassava increases, they tend to buy less and vice versa.
Through this, it is evident that income affects the demand for a certain commodity.
This is a less tangible item that still can have a big impact on demand.
There are all kinds of things that can change one's tastes or preferences that cause
people to want to buy more or less of a product. In such a situation that, a renowned
artist endorses a product or a new evidence that came up from a thorough study
preferences concerning cassava is driven by the physical appearance of the root crop
In business and economics, elasticity refers the degree to which individuals, consumers
in the value of an independent variable, X. The higher the elasticity for a particular
economic variable implies that consumers are more responsive to the changes in price
0.8409P + 0.004224I and by setting the value of I = 1,000, the demand equation is:
D = 46.1859 – 0.8409P
P = 54.9244 – 1.1892D
When the price (P) = Php20, the quantity demanded (Q) = 29.3679kgs/day or
29kgs/day of (cassava root crop). On the other hand, when the (P) = Php15, the
quantity demanded (Q) = 33.5724kgs/day or 34kgs/day of cassava (root crop). The
The demand for cassava (root crop) is an inelastic demand since it does not
easily reacts to changes in price. The computed elasticity is 0.4676. This means that for
each 1 percent change in price, the quantity demanded for cassava (root crop) will
Marginal revenue is the additional income generated from the sale of one more
P = 54.9244 – 1.1892D
TR = PD
TR = (54.9244 – 1.1892D)D
TR = 54.9244D – 1.1892D2
MR = 54.9244 – 2.3784D
To estimate the demand for cassava (root crop), the researchers used a
questions and the purposes of the study. Furthermore, the target population for this
research are those manufacturer of cassava products, specifically the cassava cake or
budin and nilupak of Tayabas city. Vendors/maker of cassava cake in Kalye Budin (is
actually a short portion of Emilio Jacinto Street, a few blocks away from the public
market, where local and foreign tourists drop by just to grab freshly-baked budin and
other delicacies the town and the province are known for) is the only market of the
study. The data that are gathered from the respondents are show in the table below.
Demand per
Kilo (D) Price Income
1 15 25 700
2 45 25 1150
3 15 25 1000
4 15 25 900
5 25 25 1000
6 25 25 850
7 15 25 900
8 45 25 2400
9 15 25 1100
10 45 25 800
11 25 25 1200
12 15 25 800
13 45 25 700
1 15 20 800
2 45 20 1000
3 25 20 700
4 15 20 800
5 25 20 700
6 25 20 1300
7 15 20 1400
8 45 20 2800
9 15 20 1500
10 50 20 700
11 35 20 1200
12 25 20 900
13 45 20 750
1 25 15 900
2 50 15 1200
3 35 15 1000
4 25 15 900
5 35 15 700
6 35 15 1500
7 25 15 1600
8 50 15 3500
9 15 15 1000
10 50 15 900
11 35 15 1300
12 25 15 1000
13 15 15 900
1 25 10 900
2 45 10 1300
3 50 10 1000
4 45 10 900
5 35 10 800
6 45 10 1500
7 45 10 1600
8 35 10 3600
9 50 10 900
10 25 10 900
11 50 10 1200
12 45 10 1100
13 35 10 1000
Table 2. Data gathered from the vendor/maker of cassava cake and nilupak
The table above shows the accumulated demand for cassava with regards to the
From the demand equation obtained and data given, we analyzed that the
intercept for the equation is 41.96. It was found out that for every increase in price, the
quantity for cassava (root crop) will decrease by 0.8409. On the other hand, as the
income increases, the quantity demanded for cassava (root crop) will increase by
0.004224.
The negative sign in the equation in price coefficient indicates an elastic
relationship that if price increases, quantity demanded for cassava (root crop) will
decrease and vice versa. In addition, the positive sign in the coefficient for the income
implies that cassava (root crop) is a normal good considering that if income increases,
the nilupak and cassava cake maker can afford more cassava (root crop).
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.44837593
R Square 0.201040974
Adjusted R Square 0.168430402
Standard Error 11.75230825
Observations 52
ANOVA
df SS MS F Significance F
Regression 2 1702.952367 851.4761836 6.164901713 0.004091197
Residual 49 6767.72071 138.1167492
Total 51 8470.673077
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 41.96193289 6.677434942 6.284139531 8.5244E-08 28.54312498 55.38074079 28.54312498 55.38074079
X Variable 1 -0.840983811 0.295355541 -2.847360877 0.006423718 -1.434522991 -0.24744463 -1.434522991 -0.24744463
X Variable 2 0.004223626 0.002686762 1.572013475 0.122383001 -0.001175624 0.009622877 -0.001175624 0.009622877
In testing the correlation for each factor of the demand, the following are the
results:
INCOME AT PRICE OF 25
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.370092692
R Square 0.1369686
Adjusted R Square 0.0585112
Standard Error 13.04577349
Observations 13
ANOVA
df SS MS F Significance F
Regression 1 297.1165025 297.1165025 1.745770323 0.213233093
Residual 11 1872.114267 170.1922061
Total 12 2169.230769
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 14.77578475 9.609705701 1.537589726 0.152401553 -6.375034886 35.92660439 -6.375034886 35.92660439
X Variable 1 0.011327022 0.00857279 1.321276021 0.213233093 -0.007541562 0.030195606 -0.007541562 0.030195606
INCOME AT PRICE OF 20
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.1520665
R Square 0.02312422
Adjusted R Square -0.065682669
Standard Error 13.63126322
Observations 13
ANOVA
df SS MS F Significance F
Regression 1 48.38298429 48.38298429 0.260387687 0.619937422
Residual 11 2043.924708 185.8113371
Total 12 2092.307692
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 25.34678346 8.498667746 2.98244198 0.012464976 6.641341868 44.05222505 6.641341868 44.05222505
X Variable 1 0.003470228 0.006800608 0.510281968 0.619937422 -0.01149781 0.018438266 -0.01149781 0.018438266
INCOME AT PRICE OF 15
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.43816052
R Square 0.191984641
Adjusted R Square 0.1185287
Standard Error 11.43713604
Observations 13
ANOVA
df SS MS F Significance F
Regression 1 341.8803419 341.8803419 2.613602614 0.134243128
Residual 11 1438.888889 130.8080808
Total 12 1780.769231
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 22.96296296 6.593443746 3.482696425 0.00512405 8.450891123 37.4750348 8.450891123 37.4750348
X Variable 1 0.007407407 0.004581909 1.616664039 0.134243128 -0.002677306 0.017492121 -0.002677306 0.017492121
INCOME AT PRICE OF 10
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.049005361
R Square 0.002401525
Adjusted R Square -0.088289245
Standard Error 9.24438265
Observations 13
ANOVA
df SS MS F Significance F
Regression 1 2.262975904 2.262975904 0.026480373 0.873683579
Residual 11 940.0447164 85.45861058
Total 12 942.3076923
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 41.52506472 5.305435019 7.826891588 8.03762E-06 29.84788098 53.20224847 29.84788098 53.20224847
X Variable 1 -0.000588374 0.00361569 -0.162727912 0.873683579 -0.008546454 0.007369707 -0.008546454 0.007369707
IV. DEMAND FORECASTING
2015 2,385,000
2016 2,425,000
2017 2,495,000
2018 2,565,000
The data presented on the table are the annual sales of cassava (root crop) and will be
used to forecast the next five year sales. The data for the year 2018 are gathered
through integrating the sales of each vendor of budin and nilupak, then multiplying it by
the price of cassava (root crop) which is Php 15.00 and multiply it by 360 days. For the
year 2015 to 2017, the same process is done in order to estimate the annual sales.
The researcher used the arithmetic straight-line method in order to forecast the
following annual sales for the next five years. The formula for this method is:
Yn - Yc
Yc = a + Yi – 1 where: a = N - 1
N = number of years
The table above shows the researchers forecast for the next 5 years of the business.
Based from the gathered and collected data through the form of surveys and
questionnaires, the researchers arrived at the conclusion that the primary factors
affecting the demand of the cassava (root crop), that is used to make budin and nilupak,
are comprised of the price of the product, income of the sellers, and their taste and
preferences. As from the results get from the survey and questionnaire and from the
different scenarios enlisted, the demand is supported by the answers and shows
interesting results. According to the sellers of cassava cake and nilupak and also from
the results tallied by the researchers, the most dominant factor affecting the demand is
the price of the cassava (root crop) itself. This factor constitute the large amount of
usage as per the demand analysis. By means of forecasting techniques which is the
forecasted sales for the next five years. According to the arrived data, it was predicted
that for the next five years the demand for cassava (root crop) will increase
substantially. And with regards to the future condition of the cassava industry especially
when large production will still occur, the budin and nilupak business will grow in
VI. BIBLIOGRAPHY
INDUSTRY.
https://www.intechopen.com/books/cassava/intoductory-chapter-cassava-as-a-staple-
food
3. Cassava Flour. (2017). Retrieved from The New Zealand Digital Library:
http://www.nzdl.org/gsdlmod
http://www.econport.org/content/handbook/Demand/Factors.html
VII. APPENDICES
information that will be asked for those businesses along Calle Budin in Tayabas City.
Survey Questionnaire
Pangalan:
Pangalan ng Negosyo:
Panuto: Bilugan ang mga letrang angkop na kasagutan sa mga hinihiling na katanungan. Sa
mga tanong na walang pamimilian, isagot ang nararapat na detalye.
1. Ilang kilong balinghoy (cassava) ang inyong binibili?
a. 10-20
b. 21-30
c. 31-40
d. 41-50
e. 51 o higit pa
2. Gaano kadalas kayong bumili ng balinghoy?
a. Araw-araw
b. Linguhan
c. Buwanan
d. Higit pa
3. Ano-ano ang mga pamantayang isinasaalang-alang ninyo sa pagbili ng balinghoy?
a. Presyo
b. Kita
c. Itsura o katangian
d. Availability
e. Lokasyon ng suplayer
f. Kaledad
4. Ilang kilong balinghoy ang nagagamit sa isang araw?
a. 10-20
b. 21-30
c. 31-40
d. 41-50
e. 51 o higit pa
5. Ano ang presyo ng inyong produkto?
a. ₱ 30-35
6. Magkano ang pang-arawang kita ng negosyo? Kung budin;
a. ₱ 500-1,000
b. ₱ 1,000-1,500
c. ₱ 1,500-2,000
d. ₱ 2,000 above
Kung nilupak;
a. ₱ 100-500
b. ₱ 500-1,000
c. ₱ 1,000-1,500
d. ₱ 1,500-2,000
7. Ilang kilo ng balinghoy and inyong bibilhin kung ang presyo nito ay bumaba sa ₱10.
a. 10-20
b. 21-30
c. 31-40
d. 41-50
e. 51 o higit pa
8. Ilang kilo ng balinghoy and inyong bibilhin kung ang presyo nito ay tumaas sa ₱20.
a. 10-20
b. 21-30
c. 31-40
d. 41-50
e. 51 o higit pa
9. Ilang kilo ng balinghoy and inyong bibilhin kung ang presyo nito ay tumaas sa ₱25.
a. 10-20
b. 21-30
c. 31-40
d. 41-50
e. 51 o higit pa
10. Ilang kilo ng balinghoy and inyong bibilhin kung ang kita niyo sa isang araw ay bumaba?
a. 10-20
b. 21-30
c. 31-40
d. 41-50
e. 51 o higit pa
11. Ilang kilo ng balinghoy and inyong bibilhin kung ang kita niyo sa isang araw ay tumaas?
a. 10-20
b. 21-30
c. 31-40
d. 41-50
e. 51 o higit pa
B. TALLY OF DATA/RESULTS OF SURVEY
1 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
a. 10-20 1 1
b. 21-30 1 1 1 3
c. 31-40 1 1 1 1 4
d. 41-50 1 1
e. 51 at higit pa 1 1 1 1 4
2 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
a. araw-araw 1 1 1 1 1 1 1 1 1 1 1 1 1 13
b. lingguhan 0
c. buwanan 0
d. higit pa 0
3 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
a. presyo 1 1 1 1 1 1 6
b. kita 0
c. itsura o katangian 1 1 1 1 4
d. availability 0
e. lokasyon ng suplayer 0
f. kalidad 1 1 1 1 1 1 1 1 1 1 10
4 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
a. 10-20 1 1
b. 21-30 1 1 1 1 4
c. 31-40 1 1 1 1 4
d. 41-50 0
e. 51 at higit pa 1 1 1 1 4
5 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
Budin
Php 30 1 1 1 1 1 1 1 1 1 1 1 1 1 13
Php 35 0
Nilupak
Php 30 0
Php 35 1 1 1 1 1 1 1 1 1 1 1 1 1 13
6 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
Budin
500-1000 1 1 1 1 1 1 1 1 8
1000-1500 1 1 1 3
1500-2000 1 1
2000-Above 1 1
Nilupak
100-500 1 1 1 1 1 1 1 1 1 9
500-1000 0
1000-1500
1500-2000
7 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
a. 10-20 0
b. 21-30 1 1
c. 31-40 1 1 1 1 4
d. 41-50 1 1 1 1 4
e. 51 at higit pa 1 1 1 1 4
8 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
a. 10-20 1 1 1 1 4
b. 21-30 1 1 1 1 4
c. 31-40 1 1
d. 41-50 1 1 1 3
e. 51 at higit pa 1 1
9 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
a. 10-20 1 1 1 1 1 1 6
b. 21-30 1 1 1 3
c. 31-40 0
d. 41-50 1 1 1 1 4
e. 51 at higit pa 0
10 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
a. 10-20 1 1
b. 21-30 1 1 1 1 1 5
c. 31-40 1 1 1 3
d. 41-50 1 1 1 1 4
e. 51 at higit pa 0
11 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
a. 10-20 0
b. 21-30 1 1
c. 31-40 1 1 1 1 4
d. 41-50 1 1 1 1 4
e. 51 at higit pa 1 1 1 1 4