A Case Discussion on Vendor Selection in Public Distribution System in Odisha: A Multicriteria Decision-Making Approach
Article Details
Pub. Date
:
Dec, 2015
Product Name
:
The IUP Journal of Supply Chain Management
Product Type
:
Article
Product Code
:
IJSCM21512
Author Name
:
Barada Prasanna Mohapatra and D K Mahalik
Availability
:
YES
Subject/Domain
:
Strategic
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:
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No. of Pages
:
15
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Abstract
In India, where 40% of the people are still below the poverty line, feeding them is a challenge. On the other hand, the government is taking lots of initiatives to feed the poor section of the society. In this connection, the Government of India has implemented Public Distribution System (PDS) to supply the required food grains at a subsidized rate through vendors or Fair Price Shops (FPS). The selection of vendors and vendor’s responsibility play a vital role in the PDS system, which is also a reason for the dissatisfaction among consumers. So the researchers and the authorities are always searching for a better process to improve the selection of vendors or FPS to minimize the problems in PDS. In this paper, an attempt has been made to suggest a method for selection of vendors for PDS with multicriteria decision-making tools, i.e., Analytical Hierarchy Process (AHP).
Description
The Public Distribution System (PDS) is one of the oldest food subsidy programs in the
country introduced by the British government during the Second World War in 1939.
Since then there have been many changes in the PDS. Odisha, with a population of 44.3
million (2015) and the third lowest population density among the major states of India,
is the poorest of India’s poor states. About 87% of the population lives in rural areas. To
feed them is a great challenge for the government and PDS is one of the solutions adopted.
And also for the smooth conduct of the PDS, the Government of India is involving many
stakeholders including the vendors. The Orissa PDS (Control) Order 2008 provides for
the modes and methods of appointments of Fair Price Dealers (FPD) known as vendors
or dealers. Apart from the government support and intervention, the vendor is mainly the
responsible stakeholder, on whose actions depends the success of the PDS. So the vendor
selection is a vital part in PDS.
Keywords
Supply Chain Management Journal, Fair Price Shops (FPS), Discussion, Vendor Selection, Public Distribution System , Public Distribution System (PDS), Analytical Hierarchy Process (AHP), Odisha, Multicriteria, Decision-Making Approach.