Track: Supply Chain Management

Abstract

An increase in the number of Internal Combustion Engine (ICE) motorcycles will have an impact on increasing carbon emissions in Indonesia. One solution is to convert an ICE motorcycle into a convertible electric motorcycle. This paper will explain the supply chain costs of a convertible electric motorcycle center in terms of manufacturers by develops a mathematical model to make a decision of an electric motorcycle conversion kit manufacturer opening with the Mixed Integer Linear Programming (MILP) model. This paper also considers aspects of economic, social, and environmental sustainability as additional points of view in decision making. The results show that the model can be a decision-making tool for opening a motorcycle conversion kit manufacturer with more optimal results. The NPV value > 0 indicates that the investment that will be carried out can be projected to bring profits to the company with a return on investment of  231.33%. Then, with the reduction of carbon gas emissions by 0.98%, it is expected to improve public health and reduce mortality by 0.08% and increase life expectancy by 0.09%.