AI-Powered Fair Price Shop Optimization and Fraud Detection

The Public Distribution System (PDS) is crucial for food security, but challenges like fraud, supply chain inefficiencies, and misallocation persist. AI-powered solutions can enhance Fair Price Shop (FPS) operations by optimizing distribution, detecting anomalies, and improving accessibility for beneficiaries.

Potential Use Cases:

1. Supply Chain Optimization: Predicts monthly demand for essential commodities based on Fair Price Shop (FPS) transactions and population density.
2. Fraudulent Transaction Detection: Identifies anomalies such as duplicate transactions and ghost beneficiaries to prevent ration fraud.
3. Geospatial Analysis for Accessibility: Ensures optimal placement of FPS by analyzing distribution gaps and travel distances for beneficiaries.

Data Artifacts & Potential AI Solutions:

Input Data:

• Fair Price Shop (FPS) Transactions Data: Monthly ration distribution, card usage trends, and financial transactions.
• Fair Price Shop (FPS) Allocation Data: Stock allocation details and demand patterns per shop.
• Geospatial Data: FPS locations, village-level accessibility, and beneficiary travel distances.

Potential Outputs:

• Real-time FPS performance dashboards with efficiency scores.
• Fraud detection alerts for duplicate or unauthorized transactions.
• Geo-mapping of underserved areas for optimized FPS placement.

Potential Solutions:

• Time-Series Forecasting (Long Short Term Memory (LSTM), Prophet): Predicts demand fluctuations for better stock allocation.
• Anomaly Detection (Density-based spatial clustering of applications with Noise (DBSCAN)): Flags fraudulent ration distribution patterns.
• Geospatial AI (Spatial Clustering): Identifies underserved areas for improved shop accessibility.

Potential Benefits:

1. Fair & Efficient Distribution: Ensures timely and need-based allocation of rations.
2. Fraud Prevention: Detects anomalies to reduce leakages and unauthorized transactions.
3. Optimized Resource Planning: Enhances FPS accessibility and supply chain efficiency with data-driven insights.