5th North American International Conference on Industrial Engineering and Operations Management

A Manufacturer Opening Decision of Electric Motorcycle Conversion Kit Due to Tax Reduction Policy: A Case Study

Achmad Habibie, Wahyudi Sutopo & Muhammad Hisjam
Publisher: IEOM Society International
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Abstract

The increasing in the number of Internal Combustion Engine (ICE) motorcycle will have an impact on increasing carbon emissions in Indonesia. One of the solutions is to convert ICE motorcycle to electric motorcycle conversion. The Indonesian government will give a tax reduction to a manufacturer involved in vehicle electrification in Indonesia. This paper will explain the supply chain costs of the center of electric motorcycle conversion kit whether as a trader or opening a manufacturer with tax reduction. This study develops a mathematical model for making decision of electric motorcycle conversion kit manufacturer opening by mixed integer linear programming model (MILP). This paper also gives breakeven analysis as a second stage to make a decision. The result shows that the model can be decision making tool for opening manufacturer of electric motorcycle conversion kit due to tax reduction and opening manufacturer is more effectively than becomes a trader.The increasing in the number of Internal Combustion Engine (ICE) motorcycle will have an impact on increasing carbon emissions in Indonesia. One of the solutions is to convert ICE motorcycle to electric motorcycle conversion. The Indonesian government will give a tax reduction to a manufacturer involved in vehicle electrification in Indonesia. This paper will explain the supply chain costs of the center of electric motorcycle conversion kit whether as a trader or opening a manufacturer with tax reduction. This study develops a mathematical model for making decision of electric motorcycle conversion kit manufacturer opening by mixed integer linear programming model (MILP). This paper also gives breakeven analysis as a second stage to make a decision. The result shows that the model can be decision making tool for opening manufacturer of electric motorcycle conversion kit due to tax reduction and opening manufacturer is more effectively than becomes a trader.The increasing in the number of Internal Combustion Engine (ICE) motorcycle will have an impact on increasing carbon emissions in Indonesia. One of the solutions is to convert ICE motorcycle to electric motorcycle conversion. The Indonesian government will give a tax reduction to a manufacturer involved in vehicle electrification in Indonesia. This paper will explain the supply chain costs of the center of electric motorcycle conversion kit whether as a trader or opening a manufacturer with tax reduction. This study develops a mathematical model for making decision of electric motorcycle conversion kit manufacturer opening by mixed integer linear programming model (MILP). This paper also gives breakeven analysis as a second stage to make a decision. The result shows that the model can be decision making tool for opening manufacturer of electric motorcycle conversion kit due to tax reduction and opening manufacturer is more effectively than becomes a trader.

Published in: 5th North American International Conference on Industrial Engineering and Operations Management, Detroit, USA

Publisher: IEOM Society International
Date of Conference: August 9-11, 2020

ISBN: 978-0-9855497-8-7
ISSN/E-ISSN: 2169-8767