Supply Chain Planning and Optimization of TPDS, Uttarakhand

India’s TPDS is a magnanimous project encompassing 2000 depots, 8000 warehouses and a network of more than 500,000 Fair Price Shops (FPS) to provide monthly food subsidies roughly among 800 million poor individuals. The present project, based in Uttarakhand, aims to reduce the cost of transportation and ensure the pre-prepositioning of adequate safety stocks in the areas where access is affected by the seasonal and predictable hazards by TPDS supply chain optimization. A mathematical model is developed to supply chain cost incurred to satisfy the demand requirements of FPS for the whole state adhering to the capacity constraints for various warehouses. As a result of it, transportation cost incurred has come down considerably as compared to actual cost incurred for PDS operations across the state of Uttarakhand. Optimal transportation cost reduces by approx. 33% in comparison to the actual cost. Unnecessary movement of food grains between warehouses is also eliminated in the optimal solution as nearly 75 % of total grains are moving directly from warehouses to FPS in optimal network.

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