Generalized Markov Method for Ranking Supplier Performance in the Herbal Industry: A Case Study of a Herbal Village in Thailand
The Thailand herbal market expected to grow 10 percent a year, but it was growing more than 30 percent in 2017. According to the import herbs as raw materials around USD 485. There are more than 11,861 Acres of herbal farms, but it is not enough for the Thai herbal market. The government also plans to promote upstream through downstream. The ministry of public health plans to promote strategies as applying providing physician and traditional Thai treatment simultaneously to patients in a community hospital by producing the products by the hospitals. Besides, major suppliers for herbs are farmers. This study is aimed to measure supplier performance of farmers in Thapthim Siam 05 village, Her Royal Highness Princess Chulabhorn Valayaluk project. Supplier selection criteria are viewed and selected from published international journals. They are cost, productivity, quality, and time. In addition, an in-depth interview of suppliers, and quantitative data are obtained. Markov Chain and Power Method are employed to evaluate and rank their performances. Policy recommendations are discussed to reduce their production cost and increase productivity.