Supplier Performance Prediction for Future Collaboration: Based on Markov Chain Model

Today, long-term relationship plays a vital role in supplier selection for supply chain management. The main reason is that long-term relationships can act as a mechanism for shifting the chains strategic focus from price to value and priorities long-term benefit over short-term gains. Since, in this paper we tried to address a method for optimal long-term alternative prediction and selection, focusing on purchase volume factor. For this, Markov chain model had been used and the final result showed improved effectiveness.