MAULANA AZAD NATIONAL

INSTITUTE OF TECHNOLOGY

SUMMER
TRAINING
REPORT
May- June, 2017

COMPLETED AT Submitted By-

INTEGRATED GENERAL Sambhavi Joshi

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SYSTEM ANALYSIS LABS

141109050
4th Year, B.Plan
 A

SUMMER TRAINING REPORT

on

FERTILIZER TRANSPORTATION NETWORK

Completed at

INTEGRATED GENERAL SYSTEMS ANALYSIS LABS

Project Name

“Fertiliser Transportation Network for RITES, at National Level Supply Chain

on Two Point Rake”

Duration

15th May to 23rd June, 2017

Submitted By

Sambhavi Joshi
Scholar No. 141109050

B.Plan 4th Year

DEPARTMENT OF PLANNING AND ARCHITECTURE

MAULANA AZAD NATIONAL INSTITUTE OF TECHNOLOGY

BHOPAL (M.P.) INDIA- 462007

September, 2017
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Table of Contents
Joining Letter............................................................................................................................. 9
Introduction to Problem .......................................................................................................... 10
What is fertilizer transport .................................................................................................... 11
Biannual Zonal Conferences and its Participants ................................................................ 12
Biannual Zonal Conferences .................................................................................................... 12
Output expected ................................................................................................................... 12
Network Analogy ..................................................................................................................... 13
Data Collection......................................................................................................................... 14
Railway station with alpha code........................................................................................... 14
Production and Demand Locations ..................................................................................... 14
Dispensing Quantities .......................................................................................................... 14
Forming Base Network ............................................................................................................ 14
Railway station with alpha code........................................................................................... 14
Production and Demand Locations ..................................................................................... 15
Dispensing Quantities .......................................................................................................... 16
Rake Distribution Rules........................................................................................................... 18
Two Point Rake (Covered wagons) ................................................................................... 18
Two and Multi Point Rake (Other than Covered Wagons) .............................................. 19
Quantities and two point rake Cluster ..................................................................................... 19
Final Outcome..........................................................................................................................20
Performance ............................................................................................................................. 22

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8
Joining Letter

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Figure 1 Joining Letter

Introduction to Problem
In India approximately two percent of the GDP is spent on logistics, whereas this
Figure is 13 percent for developed countries. Supply chain management and logistics
are still in the embryonic stage in India. The current lull in the economy is forcing
many industries to examine their costs, and cut it down in size. Today excellent
logistics management has become essential for success of companies. Logistics
function includes the total flow of material, from the purchase of raw materials to
delivery of completed products to the ultimate users. As such, it includes the
activities of sourcing and purchasing, conversion including capacity planning,
technology selection, operations management, production scheduling, materials
planning, distribution planning and management of industry warehouse operations,
inventory management, inbound, internal, and outbound transportation; linkage
with customer service, sales, reverse logistics, promotion and marketing activities.

Successful supply chain management is extremely complex because of large number

of players with varying interest or objectives are involved. Though the supply chain of
each company has its own unique features, the following general principles help in
management of supply chains.

The major challenge that the world will face in the future is regarding food security
for the ever increasing population. This challenge can be met only through increase
in productivity of the crops, an important means to achieve which would be scientific
and adequate use of fertilizers. The prime factor for some regions lagging in
agricultural productivity is the low adoption of modern technology like fertilizer,
high yielding variety seeds etc. The countries that have increased their agricultural
productivity have also considerably increased their usage of fertilizer. Globally there
is wide variation in the usage of fertilizers averaging 10 kg of nutrients per hectare of
arable land in Africa and 86 kg/ha in South Asia. Excluding Africa, fertilizer
consumption in South Asia is the lowest. Latin America for example has an average
consumption of 118 kg/ha while the mean consumption is 198 kg/ha in an average
middle-income country and 288 kg/ha in a high-income country. The fertilizer use in
any country is dependent on the crop response to the fertilizers, fertilizer cost, price
that the farmers receive for their produce and the availability of fertilizers. The
demand for fertilizers increases, when the crop responds well to its application and
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when output fetches high market price. A well-established fertilizer production

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system and distribution network is essential to achieve optimal allocation of
fertilizers.

What is fertilizer transport

The Indian Fertilizer Industry is one of the allied sectors of the agricultural sphere.
India has emerged as the third largest producer of nitrogenous fertilizers. The
adoption of back to back Five Year plans has paved the way for self-sufficiency in the
production of food grains. In fact production has gone up to an extent that there is
scope for the export of food grains. This surplus has been facilitated by the use of
chemical fertilizers. The large scale use of chemical fertilizers has been instrumental
in bringing about the green revolution in India.

Figure2. Fertilizer Production in India in Million Tons

The marketing and distribution of fertilizers to the farmers is done by about 269175
fertilizer sale points situated all over India. The sale points, 77 per cent of which are
under private traders and 23 per cent under cooperative and other institutional
agencies, distribute 60 million tonnes of fertilizers every year. For this, the rail, road
and sea transport contribute effectively through logistic support. The marketing and
distribution policies in India, but, do not provide fertilizers, in customized packs,
sufficient for specific size of holding. A policy which makes the fertilizers available in
smaller quantity along with other inputs like high yielding seeds, and plant
protection chemicals may better the small and marginal farmers in India.
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Biannual Zonal Conferences and its Participants
Biannual Zonal Conferences are held before the start of cropping season. These
season wise conferences are held zone-wise. Conference for States of South and West
Zones is held on one particular day and conference for states of North, East and
North-East Zones is held on another day.

7 Representatives/Officers from Department of Agriculture & Cooperation, State

Agriculture Departments, Department of Fertilizers, and Ministry of Railways, Lead
Fertilizer Suppliers, Fertilizer Association of India and representatives of NIC
participate in the said conferences.

Figure 3 State-wise Zones

Output expected
A comprehensive digital map of the fertilizer supply chain is to be produced. This will
be done through the creation of an online database to monitor the movement of
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fertilizers from the plant all the way to the retailer.

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We need to build an automated network for supply demand chain of Fertilizers from
15 plants from different states of India to around 2200 demand points, spread all
over the country. It is not possible or feasible to construct one to one network for the
supply chain. Hence we need an efficient and intelligent network analogy which
would simplify and demonstrate the paths for distribution.

Network Analogy
We need to build an automated network for supply demand chain of Fertilizers from
15 plants from different states of India to around 2200 demand points, spread all
over the country. It is not possible or feasible to construct one to one network for the
supply chain. Hence we need an efficient and intelligent network analogy which
would simplify and demonstrate the paths for distribution.

The network analogy we followed is:

 Forming points dictionary, with their locations and a basic ‘alpha code’ with
numbers assigned to every point representing railway stations.
 Connecting these points using the network links provided by Railway of India.
This network would act as the basic framework for any further connections.
 Recognising and sorting all the Demand Points and the supply points in the
network.
 Forming district and rake point clusters according to the two point rake rules.
This would increase the supply efficiency to remote locations.
 Adding the quantities to all the district points as well as the supply locations.
 Finding the best preferred path from Supply points- District links in order to
complete the 2 point rakes as well as the reducing the distance travelled
 Clubbing different seasonal demands and rake quantity distribution for
improving serviceability of the entire network
 Automating the network for user performance.

The whole process is first carried out for Uttar Pradesh and then the System is run
for the entire data.
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Data Collection

Railway station with alpha code

Railway stations were plotted with along with their alpha codes according to the data
given by Ministry of Railways.

Production and Demand Locations

The network of the rake points was made according to the data given by RITES Ltd.
The coordinates of the rake points

Dispensing Quantities
The Department of Fertilizers give the details about the requirement of the various
rake points. The required quantities of fertiliser, demanded is delivered in two stages

1- From the fertiliser company to the district major rake points

2- From these District major reappoints to the desired location

Forming Base Network

Railway station with alpha code
Railway stations were plotted with along with their alpha codes according to the data
given by Ministry of Railways.

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 Figure 4 Railway Stations in India

Production and Demand Locations

The network of the rake points was made according to the data given by RITES Ltd.
The coordinates of the rake points

The information about the demand of various states and rake points and the fertiliser
plant supplying them has been taken from the Department of Fertilizers. The
information gathered from there contains month wise supplied quantities of types of
fertilisers to the states for the year 2011.
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 Figure 5 Rail Network

Dispensing Quantities
The Department of Fertilizers give the details about the requirement of the various
rake points. The required quantities of fertiliser, demanded is delivered in two stages

3- From the fertiliser company to the district major rake points

4- From these District major reappoints to the desired location

The map below shows the major rake points for each district in the state along with
the rail network
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Figure 6 Major Rake points in a District 17
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 Figure 7 Major Rake points with Location of Plants

Rake Distribution Rules

Two Point Rake is a freight train carrying wagons destined for two terminals.

Two Point Rake (Covered wagons)

Any Two Point Rakes can be loaded at Trainload Class rate under the following
conditions:

 This product is available only for Covered wagons.

 Originating terminal should be a notified full or half rake terminal.
 Both destination terminals should be a notified full or half rake terminal.
 Destination terminals should not be more than 400 KM apart in lean season
and 200 KM apart in peak season.
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 A minimum of 10 wagons should be loaded for each destination.

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  The total number of wagons indented and loaded must conform to the Block
Rake composition as notified are various types of wagon by the Railway
Board.
 A Supplementary charge of 5% will be levied on Base Freight Rates for two
point rake for the period October to June.
 CRIS may make suitable amendment in the FOIS software.

Two and Multi Point Rake (Other than Covered Wagons)

Two and Multi Point Rakes for other than Covered wagons can be loaded at
Trainload Class rate under the following conditions.

 Originating terminal should be a notified full or half rake terminal.

 Each destination terminal should be a notified full or half rake terminal.
 A minimum of 10 wagons should be loaded for each destination.
 The total number of wagons indented and loaded must conform to the Block
Rake composition as notified for various types of wagon by the Railway Board.
 For the period October to June, a Supplementary charge of 5% on two point
rakes and 20% on multi point rakes will be levied on Base Freight Rates.

The loading of two point rakes (for steel traffic only) in any combination of wagons is
permitted for any two point combinations within the same Zonal Railways for
availing trainload rate benefit.

Quantities and two point rake Cluster

Over 30 mass Fertilizer production plants supply their fertilizers all over the country.
This quantity varies with the seasons and locations. It is not possible to reach each
and every demand point, as most on the agricultural fields are located in remote and
far locations.

A system of 2 point rake clusters have identified for each district point to ensure all
the demand points are covered. These rake clusters are form a web like structure
which starts from district rake points and terminates at the demand locations.
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There are few guidelines and conditions followed to make these clusters:
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  Destination terminals should not be more than 400 KM apart in lean season
and 200 KM apart in peak season.
 All the points of the cluster must come under the same state boundary.
 For all the district rake point which area also supply point, cluster nodal point
and termination station would be same

Network Analyst Tool is used to generate the clusters from the district rake points.
After sorting distances from these points till the 400 km bench mark. Closest facility
tool is used to generate the distances from each station to points.

Final Outcome
We complete the process for Uttar Pradesh by forming district and rake point
clusters according to the two point rake rules. This would increase the supply
efficiency to remote locations. The clubbed the quantities of fertilizer demand to all
the district points of Uttar Pradesh as well as the supply locations.

In the next step we worked out the best preferred path from Supply points- District
links in order to complete the 2 point rakes as well as the reducing the distance
travelled. Later we clubbed different seasonal demands and rake quantity
distribution for improving serviceability of the entire network. Fig8 shows the final
output generated for Uttar Pradesh.

The completion is still under process for the entire dataset. We worked the process
for Uttar Pradesh as on 23rd June 2017.

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Figure 8. Expected Output for UP

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Performance

Figure 9. Weekly Progress

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Figure 10. Performance Evaluation

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