MAPUA INSTITUTE OF TECHNOLOGY AT LAGUNA

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Academic Year 2022 - 2023

A FEASIBILITY STUDY FOR AN ONLINE WEB APP OF RICE DISTRIBUTION

FROM DIRECT SUPPLIERS

Raven GRANZORE

Raniel Jared HERRERA

Francesca Moira LANDRITO

Engr. Ezrha Godilano

A Feasibility Study Proposal Submitted

In Partial Fulfillment of the Requirements for the Degree of
Bachelor of Science in Industrial Engineering
















 INTRODUCTION

Deliveries are constantly prominent in our lives even before the current technological age

of innovation and accessibility. People would want commodities that are easily accessible and

aim to improve the efficiency and quality of local goods. Some local products are harder to

obtain due to a lack of variety in the physical market.

With the ever-increasing demand for agricultural supplies and raw materials, through deliveries,

we can help to provide solutions to the ongoing competition in the market. Some direct suppliers

are constantly having difficulties in the competition as well as the marketing skills and resources.

Middlemen are buying the direct stock low and selling it at a higher price. This is called

asymmetric information and it is when one side of an economic transaction has more tangible

knowledge than the other, asymmetric information, often known as "information failure," arises.

This usually occurs when the vendor of an item or service has more expertise than the customer;

however, the opposite dynamic is also conceivable. Almost all economic interactions entail

disparities in information.














A. Logo and name of the enterprise

 B. Project Area or Location

Since the product that the group has chosen is for rural areas, the project area and

workshop will be located in Brgy. Lantic, Carmona, Cavite, near the residence of one of the

researchers. The reason why the group chose the location is that it is a rural area that would take

almost 10 kilometers from the barangay to the public market. The product would help a lot for

the residents since it will reduce the time and cost of transportation going to a public market.

Also, the customers can double-check before checking out, which will reduce such incidents that

sometimes people tend to forget something and it would be a hassle to come back and forth that

distance from their houses to the market. Customers could also help the company by suggesting

and requesting products that they need, for overall improvement.

C. Description of the Project

This feasibility study aims to introduce to the market a different style and more advanced

technology that will help the farmers, consumers, and sellers of agricultural products in a way

that will help them to reduce the work and process of purchasing especially in provinces. As the

project continues the progression, the group plans to develop the product into a much bigger

scope and introduce a lot of different choices of products for the consumers.









 D. Project Long-Range Objectives

To continue growing and surviving in the market, Philocallin intends to achieve these
long-term objectives:

• To provide online sellers to come up with rare products that are harder to obtain in the
market

• To increase the quality and shelf life of commodities

• To enhance the capacity of manpower in logistics and delivery services

• To expand online direct sellers from another province

• To collaborate with other logistic companies

• To provide a wide variety of choices for consumers and would be able to expand the
products nationwide

• To establish a physical store and expand to other countries

E. Highlights of the Projects

The highlights of the projects include hassle-free delivery through an online

application. since they would not be exerting effort to go to the market for wholesale rice

products. There will be an option for the consumer to either buy on the local market at a

high price or through online services. The delivery will take place from the direct supplier

to a truck and then to a tricycle, delivering the pack of rice door to door. The customer






















 will be notified when the delivery is on that date. The customer will also have their

preferred schedule.

F. History

The idea of creating Phillocalin started with the sale of chocolates through

Shopee, because it necessitates merchandising: buying chocolates at low prices, selling

them at a high price to customers from a local supplier, and selling it online. We've all

had the idea since then to adapt that system through agricultural products due to the

current problems that direct suppliers are facing, such as middlemen buying it at low

prices and selling it to a market that has no other option, resulting in a monopoly of rice.

G. Objectives of the study

General Objectives

• To determine if the service will successfully generate profit to the market

• To determine if it will create a balance to the market demands

• To provide farmers an opportunity to benefit from a feasible system

• To lessen middlemen that buys at a low prices and selling high

• To provide alternatives prices to a high market demand

















 • To help reduce costs from consumers

• To introduce customers to a much advanced technology in buying from public

markets

Organization and Management Aspect

• To enumerate the positions, their job description, and size to form competitive

management

• To define the mission, vision, and policies for a quality supply chain management

• To identify the qualifications

Market Aspect

Technical Aspect

Financial Aspect

Socio-Economic Aspect

H. Justification of the Study

Rice is one of the main sources of staple food here in Southeast Asia. It is one of the basic

needs included in daily meals in order to function and work throughout the day. An average

Filipino consumes 118.81 kilograms (kg) per year, according to the PSA. This is equivalent

to consuming 325.5 grams of milled rice per day.









 According to the International Rice Research Institute, the Philippines is considered one

of the top 10 exporters of rice production worldwide. Meanwhile, the Philippines is also

considered one of the top consumers per annum. In fact, the Philippines is also leading the

countries with the largest imports of rice from other countries.

I. Scope and Delimitations

The feasibility study will focus on Brgy. Lantic, Carmona, Cavite, near the residence of
one of the researchers. The reason why the group chose the location is that it is a rural
area that would take almost 10 kilometers from the barangay to the public market. The
group's primary goal is simple online application-based delivery. The consumer will have
the option of purchasing through online services or the local market. The pack of rice will
be delivered door to door using a delivery vehicle. When the delivery is scheduled for
that date, the customer will be informed. Additionally, the customer will have their
preferred time slot.

J. Definition of Terms

Technological age. is a time in history that began in the middle of the twentieth century. It is
characterized by a rapid shift from an economy based on information technology to traditional
industries, which were established during the Industrial Revolution.
Physical market. is a setup where buyers can meet the sellers in person and buy the goods they
want in exchange for money.
Middlemen. a person who purchases products from manufacturers and sells them to retailers or
customers.
Economic transaction. occurs when one party provides another with something of economic
value.





 Asymmetric information. occurs when one party to a financial transaction has more material
knowledge than the other.
Economic interaction. are carried out between individuals and groups acting as economic agents
by exchanging either natural or manufactured entities. money, goods, and services, in a plethora
of combinations.
Public market. exist to serve a public purpose, showcase a community's distinctive character and
culture, and supply the community's daily shopping requirements.
Online application. is a piece of software or computer software designed to run on a smartphone,
tablet, or watch.
Merchandising. the act of promoting the sale of goods, particularly through their display in retail
establishments.
Agricultural products. any raw or processed commodity sold for human consumption (except for
water, salt, and additives) or animal feed.

K. Methodology

For this study, the business owners will have to accomplish six main steps which includes (1)

Brainstorming, (2) Initial observation and trial of the product, (3) Data gathering, (4) Actual

paper writing, (5) Conclusion.

Figure 1.2 Methodology Flow Chart




 1. Brainstorming
All of the members of the group have been brainstorming to come up with an idea of

implementing a delivery service that is associated with an easy access of convenience. They have

discussed possible concepts for online web application to attain its main objectives, as well as the

long term objectives.

2. Initial Observation
The topic for the feasibility study was approved by the adviser. After that the group made

an outline and researched all the possible implications of this application.

3. Data Gathering
The group surveyed for market and demand analysis. This survey is critical for

the study to know if the respondents are willing to try that service, how much they are

willing to pay for services charges and other questions that will help in strategic

promotions. The group also gathered data such as the price or rates of tools, equipment,

machinery, variable costs such as labor and material costs as well as fixed costs such as

utilities. The group used the internet searching for some necessary research for the cost of

logistics, storage, and etc.

4. Actual paper writing

The group transferred all the data, ideas and information gathered into written

paper for compilation. The formats and flow of the standard feasibility study were used

for this paper writing.









 5. Data Evaluation
The data obtained from surveys and research will be assessed and analyzed in order to

make critical business choices.

6. Conclusion

After performing the analysis, the group determined if the company idea was

feasible or not. Recommendations and potential modifications were also discussed for

future research.