1. 1
FOOD CORPORATION OF INDIA
Optimized Monthly
Distribution Plan of Food
Grains for 2012-13
Group 10:
Piyush Grover 11FN-128
Ritesh Khanna 11IB-047
Shafaquat Husain 11FN-093
Shaurya Vikram Singh 11FN-096
Shubhendu Gaur 11FN-102
2. 2
Table of Contents
Food Corporation of India ............................................................................ 1Error! Bookmark not defined.
Company Overview .................................................................................. 3Error! Bookmark not defined.
Case .............................................................................................................. Error! Bookmark not defined.4
Methodology................................................................................................ Error! Bookmark not defined.5
Objective .................................................................................................. Error! Bookmark not defined.5
Data Collection and Assumptions ............................................................ Error! Bookmark not defined.5
Approach ...................................................................................................... Error! Bookmark not defined.9
Final Solution and Interpretation............................................................... Error! Bookmark not defined.10
3. 3
Company Overview
The Food Corporation of India was setup under the Food Corporation Act 1964, in order to
fulfil following objectives of the Food Policy:
Effective price support operations for safeguarding the interest of the farmers
Distribution of food grains throughout the country for public distribution system
Maintaining satisfactory level of operational and buffer stocks of food grains to
insure National Food Security
Since its inception, FCI has played a significant role in India's success in transforming the
crisis management oriented food security into a stable security system.
In its 45 years of service to the nation, FCI has played a significant role in India's success in
transforming the crisis management oriented food security into a stable security system.
FCI's Objectives are:
To provide farmers remunerative prices
To make food grains available at reasonable prices, particularly to vulnerable section
of the society
To maintain buffer stocks as measure of Food Security
To intervene in market for price stabilization
Case
4. 4
The major work of Food Corporation of India is to insure food security and provide farmers
with reasonable money for their yield. The corporation thus has to look into a lot of work on
demand and supply of food and its transportation from one part of the country to another
part. All these costs should be minimized at the same time ensuring food for all states.
Case for Demand – Supply of Rice and Wheat
We have found out by certain references as to how much surplus of rice and wheat does a
state produce after meeting their own requirements and we also have the data as what
remainder of their cannot be met internally. So this gives us data for demand and supply
requirements of states.
Each state requires different amount of rice and wheat as the year goes on. With the help of
previous data we can forecast the requirement of wheat and rice per month.
Transportation
To meet demand and supply of these states wheat and rice from one state must be
transported from one state to another.
90% of transportation is done through railways. So each state requires specific numbers of
rakes for the transportation of wheat and supply. The availability of rakes is a constraint and
thus proper allotment of rakes throughout the year per state should be decided for smooth
transportation.
We must thus ensure the adequate supply of wheat and rice to each state with least
possible transportation cost.
We must find out the amount of rice and wheat required by each state for every month of
the year.
We must find out the number of rakes required by each state for transportation of wheat
and rice.
5. 5
Methodology
Objective:
To minimize the cost of transportation of food grains from the surplus states to the deficit states
through railways.
Rice and Wheat are the main food-grains that are procured, stored and transported by the FCI. The
following are the states with surplus of Wheat and Rice (over and above their own consumption).
Wheat Rice
Madhya Pradesh Orissa
Haryana Haryana
Punjab Punjab
Uttarakhand
Andhra Pradesh
Maharashtra
Chattisgarh
Majority of the other states require substantial wheat and rice to be transported from the surplus
states to meet their annual demand.
Data collection and Assumptions:
We got data from the following two sources:
Food Corporation of India
FCI website (www.fciweb.nic.in)
Google maps (www.maps.google.com)
6. 6
Following is the data we got from the Food Corporation of India
i. Demand-Supply of Wheat and Rice
Demand-Supply (in Demand Supply
Lakh Million
tonnes) Wheat Rice Total Wheat Rice
Bihar 12.59 18.55 31.14
Jharkhand 0 13.95 13.95
Orissa 5.45 0.35 5.8 0 0.75
West Bengal 29.68 5.73 35.41
N.E. Zone 8.54 37.82 46.36
Delhi 9.66 1.92 11.58
Haryana 0 0 0 50.55 21.5
Himachal Pradesh 5.09 3.59 8.68
Jammu & Kashmir 8.23 10.2 18.43
Punjab 0 0 0 104.55 91.91
Rajasthan 20.83 0.89 21.72
Uttar Pradesh 22.2 7.5 29.7
Uttarakhand 3.25 0 3.25 0 1.08
Andhra Pradesh 1.7 0 1.7 0.18 60.31
Kerala 3.3 17.1 20.4
Karnataka 6.23 29.21 35.44
Tamil Nadu 3.47 29.8 33.27
Gujrat 14.05 5.85 19.9
Maharashtra 30.43 20.35 50.78 0 0.24
Madhya Pradesh 0 1.88 1.88 31.89 0
Chhattisgarh 2.47 0 2.47 0 28.9
Total 187.17 204.69 391.86 187.17 204.69
7. 7
ii. Storage Capacity
Storage Capacity
States
(in LMT)
Bihar 7.2
Jharkhand 1.31
Orissa 6.06
West Bengal 11.12
Sikkim 0.11
Assam 2.84
Arunachal Pradesh 0.22
Meghalaya 0.26
Mizoram 0.26
Tripura 0.48
Manipur 0.27
Nagaland 0.33
Delhi 3.67
Haryana 32.18
Himachal Pradesh 0.26
Jammu & Kashmir 1.31
Punjab 84.84
Chandigarh 3.63
Rajasthan 26.29
Uttar Pradesh 57.21
Uttarakhand 2
Andhra Pradesh 50.74
Andaman Nicobar 0.07
Kerala 5.37
Karnataka 8.57
Tamil Nadu 10
Pondicherry 0.74
Gujrat 7.43
Maharashtra 21.78
Goa 0.15
Madhya Pradesh 7.52
Chhattisgarh 10.16
Grand Total 364.38
8. 8
iii. Planned and actual dispatch of rakes for the 2010-11 and 2011-12
Following is the data obtained from www.maps.google.com
i. Distance Matrix
Distance Matrix Andhra Madhya
Orissa Haryana Punjab Uttarakhand Pradesh Maharashtra Pradesh Chattisgarh
Bihar 804 1301 1367 1062 1465 1827 997 742
Jharkhand 504 1447 1513 1281 1391 1740 1056 616
Orissa - 1899 1965 1733 1015 1696 1193 572
West Bengal 443 1722 1788 1556 1459 1958 1418 834
N.E. Zone 1422 1994 2060 1843 2384 2715 1885 1613
Delhi 1650 261 327 240 1507 1394 748 1165
Haryana 1899 - 97.2 169 1765 1354 1009 1391
Himachal
2009 90 210 231 1866 1753 1106 1523
Pradesh
Jammu &
2228 341 924 1015 2638 2525 1212 2295
Kashmir
Punjab 1977 97.2 - 255 1826 1713 1074 1457
Rajasthan 1697 506 512 505 1403 1145 562 1164
Uttar Pradesh 1177 698 763 546 1261 1363 621 811
Uttarakhand 1813 169 257 - 1710 1600 954 1370
Andhra Pradesh 1015 1765 1831 1710 - 695 843 775
Kerala 1990 3062 2495 3007 1296 1216 2138 2072
Karnataka 1436 2336 2402 2281 570 993 1412 1346
Tamil Nadu 1235 2396 2462 2341 633 1291 1472 1188
Gujrat 1775 1157 1117 1156 1226 548 637 1205
Maharashtra 1696 1655 1721 1601 693 - 770 1125
Madhya Pradesh 1193 1009 1074 954 843 770 - 635
Chhattisgarh 571 1391 1457 1329 775 1125 635 -
Assumptions:
Only those states of India where railway network is available have been considered (leaving
Himachal Pradesh, Lakshadweep, and Andaman & Nicobar Islands).
Since we only have annual surplus quantity with the supplier states we assume that these
suppliers will be able to fulfill the monthly demand of the states till they exhaust their given
annual surplus quantity.
9. 9
Approach
The following steps have been taken to fulfill the objective:
1. The transportation matrix and the Demand-Supply data have been used to
minimize the total transportation cost.
o Following Constraints have been applied:
Demand of the deficit states should be fulfilled
Supplier states cannot supply more than their surplus capacity
2. The optimization done in step 1 has been done for both wheat and rice.
3. The solutions achieved through step 1 and 2 are merged to find out the total
transport of food grains from the supplier states to the deficit states throughout
the year.
4. The data obtained from step 3 has been used to find the number of rakes
required for the transport of food grains from the sources to the destinations
according to the optimized solution obtained above (1 rake =2550MT).
5. Thereafter, from the planned dispatch of rakes for the previous years we have
forecasted the demand from the deficit states on a monthly basis (summation of
a states monthly demands = its annual demand).
6. We then use this monthly demand obtained in step 5 as minimum stock that
should be supplied to the deficit states every month from one of the supplier
states according to the optimized solution found.
7. Step 6 has been performed for both wheat and rice and has been repeated to
obtain the monthly dispatch schedule for all the 12 months in the fiscal year.
10. 10
Solution and Interpretation
Objective 1:
Objective Function: Optimum allocation of wheat and rice from supply states to demand
states by minimizing the transportation cost.
The optimum allocation was as below:
Table(i) WHEAT
Madhya
Pradesh Haryana Punjab
Bihar 0 0 12.59
Jharkhand 0 0 0
Orissa 0 5.45 0
West Bengal 0 8.93 20.75
N.E. Zone 0 0 8.54
Delhi 0 9.66 0
Haryana 0 0 0
Himachal
0 5.09 0
Pradesh
Jammu &
0 8.23 0
Kashmir
Punjab 0 0 0
Rajasthan 0 0 20.83
Uttar Pradesh 0 0 22.2
Uttarakhand 0 3.25 0
Andhra Pradesh 1.7 0 0
Kerala 0 0 3.3
Karnataka 6.23 0 0
Tamil Nadu 3.47 0 0
Gujrat 0 0 14.05
Maharashtra 20.49 9.94 0
Madhya Pradesh 0 0 0
Chhattisgarh 0 0 2.47
11. 11
Table(ii)Rice
Andhra
Uttarakhand Maharashtra Chattisgarh
Orissa Haryana Punjab Pradesh
Bihar 0 0 17.47 1.08 0 0 0
Jharkhand 0 0 0 0 0 0 13.95
Orissa 0.35 0 0 0 0 0 0
West Bengal 0.4 0 0 0 0 0 5.33
N.E. Zone 0 0 37.82 0 0 0 0
Delhi 0 0 1.92 0 0 0 0
Haryana 0 0 0 0 0 0 0
Himachal
0 3.59 0 0 0 0 0
Pradesh
Jammu &
0 10.2 0 0 0 0 0
Kashmir
Punjab 0 0 0 0 0 0 0
Rajasthan 0 0 0.89 0 0 0 0
Uttar
0 0 7.5 0 0 0 0
Pradesh
Uttarakhand 0 0 0 0 0 0 0
Andhra
0 0 0 0 0 0 0
Pradesh
Kerala 0 0 6.18 0 10.92 0 0
Karnataka 0 0 0 0 29.21 0 0
Tamil Nadu 0 0 0 0 20.18 0 9.62
Gujrat 0 0 5.85 0 0 0 0
Maharashtra 0 7.71 12.4 0 0 0.24 0
Madhya
0 0 1.88 0 0 0 0
Pradesh
Chhattisgarh 0 0 0 0 0 0 0
Interpretation: For example, the first row of table (i) shows that for minimum
transportation cost 12.59 LMT of wheat should be transported from supplier state Punjab to
receiver state Bihar.
Similarly we can interpret the table for rice.
12. 12
Objective 2:
Objective: We have used the results obtained so far to generate the month wise allocation
of wheat and rice from the supply to demand states. The month wise allocation tables with
the left over capacity for supply (of supply states) is given below –
April
Wheat movement(in
Madhya Total
LMT)
Pradesh Haryana Punjab
Bihar 0.00 0.00 0.89 0.89
Jharkhand 0.00 0.00 0.00 0.00
Orissa 0.00 0.66 0.00 0.66
West Bengal 0.00 2.76 0.00 2.76
N.E. Zone 0.00 0.00 0.68 0.68
Delhi 0.00 2.09 0.00 2.09
Haryana 0.00 0.00 0.00 0.00
Himachal Pradesh 0.00 0.00 0.00 0.00
Jammu & Kashmir 0.00 0.74 0.00 0.74
Punjab 0.00 0.00 0.00 0.00
Rajasthan 0.00 0.00 0.00 0.00
Uttar Pradesh 0.00 0.00 0.47 0.47
Uttarakhand 0.00 0.08 0.00 0.08
Andhra Pradesh 0.85 0.00 0.00 0.85
Kerala 0.00 0.00 0.32 0.32
Karnataka 0.75 0.00 0.00 0.75
Tamil Nadu 0.29 0.00 0.00 0.29
Gujrat 0.00 0.00 1.12 1.12
Maharashtra 3.09 0.00 0.00 3.09
Madhya Pradesh 0.00 0.00 0.00 0.00
Chhattisgarh 0.00 0.00 0.18 0.18
Total 4.97 6.34 3.65 14.97
Available cpacity
Madhya
Pradesh Haryana Punjab
31.89 50.55 104.73
