Generalized Markov Method for Ranking Supplier Performance in the Herbal Industry: A Case Study of a Herbal Village in Thailand

Abstract

The Thailand herbal market is expected to grow 10 percent a year, but it grew more than 30 percent in 2017. There are more than 11,861 acres of herbal farms, but this is not enough for the Thai herbal market. The government plans to promote supply chain, both upstream and downstream. This study measures the supplier performance of the households in Thapthim Siam 05 herbal community in Thapthim Siam 05 village which supplies Wang Namyen Hospital. Households have planted herbs and already received Good Agricultural Practices (GAP) certificates. Four supplier selection criteria were selected. They include cost, productivity are employed to evaluate and rank performances. The ranking is divided into three levels, which are excellent, good, and moderate. Performances at the excellent level can be further improved in order to receive a higher ranking in the future. Recommendations for each level of performance are also discussed., quality, and time. In addition, in-depth interview of suppliers were conducted and quantitative data collected. The Generalized Markov (GeM) method and the Power method