Optimization of inventory policies of food grain distribution stage in public distribution system

2019 ◽  
Vol 26 (2) ◽  
pp. 692-713 ◽  
Author(s):  
Sudhir Ambekar ◽  
Rohit Kapoor
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Base Stock ◽  
Inventory Policies ◽  
Inventory Policy ◽  
Content Type ◽  
Public Distribution System ◽  
Holding Cost ◽  
Grain Distribution ◽  
Stock Policy

PurposeThe purpose of this paper is to model the distribution stage of the public distribution system (PDS) and optimize the inventory policy during this stage of the PDS to address some of the inefficiencies present in the system. This study models this supply chain as a multistage supply chain consisting of storage depots, issue centers, fair price shops and card holders.Design/methodology/approachA two-stage modeling approach is used to model the distribution stage in the PDS. In the first stage, the authors developed a simulation model for periodic review-based stock policy with appropriate assumptions. This helped minimize the total supply chain cost (TSCC). The TSCC consists of three cost elements, namely, ordering cost, holding cost and shortage cost. These three cost elements, in turn, depend on inventory policy parameters, such as review periods and base stock levels, at various echelons. In the second stage, a Genetic Algorithm based optimization approach was used.FindingsA set of optimal policy parameters was identified. It is observed that base stock levels at issue centers are higher as compared to those in the FPS and the TSCC is less in scenario, when backorder cost is equal to the holding cost.Practical implicationsPresent study will be useful to policy makers in improving PDS performance. This optimization of inventory policies helps actors in the PDS supply chain to choose appropriate policy parameters in the present inventory policy so as to reduce the overall distribution cost.Originality/valueUnlike the previous researchers who examined the PDS from the social security perspective and tried to address specific problems to improve functioning of the PDS, this study looked at the problem as a supply chain-related problem and optimized the inventory parameters in one of the subsets of the PDS supply chain.

Selecting enablers for sustainable PDS supply chain in the Indian context using fuzzy-DEMATEL approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sumanta Das ◽  
Akhilesh Barve ◽  
Naresh Chandra Sahu ◽  
Devendra K. Yadav
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Causal Model ◽  
Literature Survey ◽  
Fuzzy Dematel ◽  
Content Type ◽  
Public Distribution System ◽  
Food Grains ◽  
Indian Context ◽  
Entire Society

PurposeThis paper aims to identify, analyze and evaluate the major enablers for the sustainable public distribution system (PDS) supply chain in India in lessening food insecurity by distributing essentials food grains at a subsidized rate.Design/methodology/approachThe major enablers for the sustainable PDS supply chain were explored by conducting the literature survey and discussion with academic and warehouse experts. Then, the fuzzy-DEMATEL (decision-making trial and evaluation laboratory) technique was applied to develop a causal model that analyses the interaction among the identified enablers.FindingsThis study recognizes fifteen enablers through literature survey and experts' opinions. The present work concludes that “proper identification of the PDS beneficiaries” and “willingness and commitment of the top management and policymaker” are the two major enablers for the sustainable PDS supply chain.Research limitations/implicationsThis work would be helpful for profoundly understanding the major enablers, and how they are affecting the entire PDS supply chain. The study would be beneficial for the general people and the entire society straightforwardly by providing suggestions for food security.Originality/valueIdentifying and analyzing the major enablers for the sustainable PDS supply chain helps to visualize the problem more effectively and efficiently. Besides, the causal model explains a comprehensive perspective on the identified enablers.

Structural mapping of public distribution system using multi-agent systems

2015 ◽  
Vol 21 (5) ◽  
pp. 1066-1090 ◽  
Author(s):  
Sudhir Ambekar ◽  
Rohit Kapoor ◽  
Peeyush Mehta
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Complex Structure ◽  
Decision Makers ◽  
Multi Agent Systems ◽  
Content Type ◽  
Food Supply Chains ◽  
Public Distribution System ◽  
Multi Agent ◽  
Food Grain

Purpose – The purpose of this paper is to develop a framework for mapping the Indian Public Distribution System (PDS) using multi-agent system (MAS). The entire PDS supply chain from purchase to the distribution is mapped in detail by integrating stages of PDS supply chain. Design/methodology/approach – Literature related to PDS, food grain supply chain (FGSC) and MAS is reviewed and critically assessed. Based on this a framework is proposed which will help in improving functioning of PDS. Findings – The PDS has many shortcomings arising from its complex structure and practices which are used to implement it. The authors propose an MAS to model it in which each entity will be modelled as an agent. The authors propose two stages of supply chain. First stage models the processes from procurement to storage of food grain and second stage model the distribution process. Practical implications – This paper will be of interest to the policy makers and decision makers involved in the PDS by providing the shortfalls in the system and also suggesting a method to model the PDS based on practices of food supply chains. Originality/value – This paper provides the decision makers in the PDS, a framework to model and assess the entire supply chain. This will help them in effective implementation of the PDS and also improve in the areas of concerns which are pointed the study.

Improvement of public distribution system efficiency applying blockchain technology during pandemic outbreak (COVID-19)

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anup Kumar
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Negative Impact ◽  
Real Life ◽  
Cost Benefit ◽  
Content Type ◽  
Public Distribution System ◽  
Blockchain Technology ◽  
Supply Chain Efficiency ◽  
The Cost

PurposeThe purpose of this paper is to analytically examine the viability of using blockchain technology (BT) in a public distribution system (PDS) supply chain to overcome issues of shrinkage, misplacement and ghost demand.Design/methodology/approachThe authors use a standard news vendor model with two objectives, the first of which includes a reduction of the total cost of stock, while the second includes minimization of the negative impact of human suffering due to the nonavailability of subsidized food supplies to the needy people.FindingsThe authors applied the model to a real-life case to draw meaningful insights. The authors also analyzed the cost/benefit tradeoff of adopting BT in a PDS supply chain. The results show that the adoption of BT in a charitable supply chain can reduce pilferage and ghost demand significantly.Originality/valueThe paper is positioned for utilizing inventory visibility via consistent and tamper-resistant data stream flow capability of BT to enhance the overall efficiency of PDS. Notably, Indian PDS faces three major challenges in terms of its supply chain efficiency.

Optimal in-store inventory policy for omnichannel retailers in franchising networks

2019 ◽  
Vol 47 (12) ◽  
pp. 1251-1265 ◽  
Author(s):  
Jianjun Xu ◽  
Lanlan Cao
Keyword(s):  
Inventory Management ◽  
Inventory Model ◽  
Base Stock ◽  
Periodic Review ◽  
Inventory Policy ◽  
Stock Level ◽  
Content Type ◽  
Allocation Policy ◽  
Base Stock Policy ◽  
Stock Policy

Purpose The purpose of this paper is to characterize the optimal ordering and allocation policy for a store replenishment decision in the context of an omnichannel retailer in a franchise network. The authors further show that a myopic policy is optimal, which circumvents the curse of dimensionality for the multi-period inventory model and help store managers optimize their decisions about the amount of inventory to stock for both online and offline demands and the percentage of inventory to reserve for online orders. Design/methodology/approach This research is trigged by several managerial studies which suggest reserving a certain percentage of the in-store inventory for online orders as a good store inventory allocation practice for omnichannel retailers in a franchise network. The authors used an analytical model to develop this practice by clarifying how store managers can decide on the amount of inventory to replenish and the percentage to reserve for online orders. Findings This study develops a finite horizon, periodic review inventory model to identify an optimal and dynamic replenishment and allocation policy. The analysis uncovers the system’s fundamental structural property concavity. The research shows that, due to this property, the optimal replenishment policy is a base-stock policy. The latter is due to the base stock level being independent of the initial inventory at hand, and the optimal allocation level being non-decreasing on the base-stock level. Research limitations/implications This study contributes to the literature on store inventory management for omnichannel retailers in a franchise network by investigating their optimal store inventory ordering and allocation policy. Nevertheless, the zero-lead time and zero-setup cost assumptions limit the findings. Practical implications Insights into an optimal store inventory policy may guide franchisee store managers to decide on the amount of inventory to replenish and the percentage to reserve for online orders. Originality/value The originality of this paper lies in its focus on in-store inventory management for omnichannel retailers in a franchise network. The findings are helpful for franchisor retailers to implement the omnichannel strategy at the level of in-store inventory management. Beyond using incentive systems, the franchisor should leverage legitimate powers by mentioning a relevant measure in their contracts with their franchisee to minimize their channel conflicts and ensure their customers have seamless shopping experiences.

Supply chain of the Indian public distribution system: a new paradigm

2017 ◽  
Vol 14 (1) ◽  
pp. 110-123 ◽  
Author(s):  
Ajay Bohtan ◽  
Prem Vrat ◽  
Anil K. Vij
Keyword(s):  
Supply Chain ◽  
Hybrid Method ◽  
Distribution System ◽  
Swot Analysis ◽  
Cost Effective ◽  
Quantitative Information ◽  
Specific Reference ◽  
New Paradigm ◽  
Content Type ◽  
Public Distribution System

Purpose The purpose of this paper is to identify the various strengths, weaknesses, opportunities and threats (SWOT) in the supply chain of the existing Indian public distribution system (PDS) and to analyse the same with a view to arriving at the vital recommended strategies for making the supply chain more effective and efficient. Design/methodology/approach This paper examines a new hybrid method for improving the usability of SWOT analysis. The analytic hierarchy process (AHP) has been integrated with SWOT analysis. Use of the AHP method on the SWOT factors has yielded analytically determined priorities for the factors included in SWOT analysis and made them commensurable. The main aim in applying the hybrid method was to improve the quantitative information basis of strategy planning processes. The paper was started by listing the various factors of the four different groups of SWOT with reference to the PDS. After further shortlisting, pairwise comparisons were carried out using a software (Super Decisions) to arrive at prioritised factors for each group. The strategy options were then formulated and prioritised on the basis of the existing weightages of each factor. Findings The results indicated that use of available ICT solutions as part of the “Digital India” is vital in achieving the most important potential strategy alternatives in improving the supply chain for the PDS. Practical implications The analysis helps in identifying strategies to improve the existing supply chain of the Indian PDS and make it more efficient and cost effective. Originality/value This paper provides some useful insight into the SWOT analysis of the Indian PDS with specific reference to the supply chain management issues of the PDS.

scholarly journals Antecedents to buyer-supplier coordination in the pharmaceutical supply chain

2020 ◽  
Vol 14 (2) ◽  
pp. 289-303
Author(s):  
Thanigavelan Jambulingam ◽  
Ravi Kathuria
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Supply Chain Coordination ◽  
Regulatory Compliance ◽  
Future Research ◽  
Chain Process ◽  
Pharmaceutical Supply Chain ◽  
Content Type ◽  
Pharmaceutical Distribution ◽  
Process Coordination

Purpose The purpose of this study is to understand the antecedents that influence supply chain coordination in the pharmaceutical supply chain using the transaction cost analysis framework. Design/methodology/approach Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses. Findings The findings of this paper show the importance of antecedents that are based on the transactional cost theory, such as asset specificity and environmental uncertainty. These antecedents impact the supply chain process coordination at different levels – transactional, operational and strategic. Research limitations/implications Future research may investigate additional antecedents using other theoretical lenses. Practical implications Pharmaceutical wholesalers are dependent on pharmaceutical manufacturers for the supply of products and face intense competition that results in lower profit margins. Given that the pharmaceutical industry is strictly regulated, the wholesaler facilitates regulatory compliance of the manufacturers in the distribution process by coordinating with them. But the wholesalers do also face a constant threat from the manufacturers, who could potentially bypass the wholesalers (disintermediation) and go directly to the pharmacies. To counterbalance the dependence, the wholesalers strive to achieve loyalty with the retail pharmacies. Through supply chain coordination, the wholesalers achieve efficiency in procurement for the pharmacies, thus reducing cost and improving their competitive advantage. Social implications Supply chain coordination in the pharmaceutical supply chain improves the safety and security of the pharmaceutical distribution system. Originality/value This paper contributes to the supply chain coordination stream of literature. To the best of the authors’ knowledge, this is the first study to develop the three levels of process coordination in the pharmaceutical supply chain context. This paper shows how process coordination can be achieved between the dyad without vertical integration.

Incentive mechanism for a sustainable public distribution system

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sri Vanamalla Venkataraman ◽  
Faiz Hamid
Keyword(s):  
Moral Hazard ◽  
Information Asymmetry ◽  
Distribution System ◽  
Design Methodology ◽  
Incentive Mechanism ◽  
Bureaucratic Corruption ◽  
Content Type ◽  
Public Distribution System ◽  
The Incentive Mechanism ◽  
Level Of Effort

Purpose Government distributing rationed goods through a public distribution system often do not reach the deserving citizens primarily due to the practice of corruption. This paper aims to design an incentive mechanism to curtail such corrupt practices. Design/methodology/approach The incentive mechanism is developed in a principal-agent framework where the information asymmetry is in the form of moral hazard. Findings The mechanism designed through this study sufficiently penalizes the agent who receives bribe and incentivizes if desired level of effort is applied. Originality/value The paper contributes to the existing literature by developing an incentive mechanism to prevent bureaucratic corruption. Appropriate wages are also quantified in this study.

Comparative multi criteria analysis and dependent optimisation through integrated supply chain

2014 ◽  
Vol 63 (8) ◽  
pp. 1046-1069 ◽  
Author(s):  
Sanjay Sharma ◽  
Akshat Sisodia
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Service Level ◽  
Inventory Level ◽  
Inventory Policies ◽  
Inventory Cost ◽  
Content Type ◽  
Customer Service Level ◽  
Integrated Supply Chain ◽  
Different Levels

Purpose – The purpose of this paper is to compare various inventory policies and their effect on various performance metrics at different levels of a multi stage supply chain. Later the model is integrated to include optimization of entire supply chain through implementation of collaborative supply chain model. Design/methodology/approach – Alternative inventory policies have been developed at different echelons and a comparison reflecting the usability on various factors such as inventory level, inventory cost and service level is presented so as to support the decision-making process. Various inventory policies such as economic order quantity, periodic ordering (T, M) and stock to demand have been considered. Along with the basic assumptions; lead time, demand variability, variability in demand during lead time, stock out costs have also been included to make the model more applicable to practical situations. Findings – After the selection of most appropriate inventory policy at each level through a decision matrix, the total cost of operating such a supply chain is calculated along with other parameters such as service level and inventory turns. The approach is of aggregating the optimized value at each echelon referred to as aggregated supply chain in the paper. Then the concept of integrated supply chain is introduced which optimizes the supply chain as a whole, rather than aggregating local optima. The comparison is made between the two approaches that prove the integrated supply chain's superiority. Furthermore, dependent optimization is run as it is not practically possible for each echelon to optimize at the same time. Originality/value – Each echelon is allowed to optimize at a time and other echelons assume corresponding values. This final comparative multi criterion analysis is based on the three factors, i.e. inventory cost, customer service level and inventory turnover with different weights assigned to each factor at different levels of a supply chain. Finally a consolidation of results is made to reflect the overall preference which proves that an integrated supply chain best serves all the parameters combined together.

Managing supply and transportation disruptions: a case of Indian fair price shops

Kybernetes ◽  
2019 ◽  
Vol 49 (11) ◽  
pp. 2773-2797 ◽  
Author(s):  
Sayan Chakraborty ◽  
Sarada Prasad Sarmah
Keyword(s):  
Distribution System ◽  
Optimization Technique ◽  
Inventory System ◽  
Fair Price ◽  
Policy Makers ◽  
Content Type ◽  
Public Distribution System ◽  
System A ◽  
Food Grains ◽  
Simulation Based

Purpose India has the largest public distribution system (PDS) in the world, working through over five million fair price shops (FPS) to distribute food grains among its beneficiaries at a subsidized rate. In this paper, the authors study the inventory system of Indian FPS. The system involves a distributor, who is solely responsible for the replenishment of the FPS. In a real-world scenario, the distributor is subjected to random supply and transportation disruptions. The purpose of this paper is to investigate and minimize the impacts of such disruptions. Design/methodology/approach In this paper, the authors adopt a simulation-based technique to explore the impacts of various traits of disruptions like frequency and duration on the FPS inventory system. A simulation model for the Indian FPS is developed and the impacts of disruptions are investigated by a case study. Findings The authors use a simulation-based optimization technique to suggest a simple managerial change that can lead to a minimization of inventory shortage up to 60 per cent and system cost up to 21 per cent over the existing practice. Originality/value The present study addresses the FPS inventory system of Indian PDS, which is by its nature unique and has not been considered by any other previous literature. The findings of this study will be of particular interest to the policy-makers to build a more robust PDS in India.

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