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                                                     Seminar

             Department of Systems Engineering and Engineering Management
                                  The Chinese University of Hong Kong

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Title

:

On the Effectiveness of a Government's Tax Reduction Policy for Consumers' Purchases of New Automobiles

 

　

　

　

Speaker

:

Prof. Mingming Leng

　

　

Department of Computing and Decision Sciences

　

　

Lingnan University

　

　

　

Date

:

Nov 19th, 2010 (Friday)

　

　

　

Time

:

4:30 p.m. - 5:30 p.m.

　

　

　

Venue

:

Room 513

　

　

William M.W. Mong Engineering Building

　

　

(Engineering Building Complex Phase 2)

　

　

CUHK

　

　

　

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Abstract:
　

We investigate two tax reduction policies that have been implemented by the U.S. and the Chinese governments to stimulate consumers' purchases of new automobiles and help their automobile industries during the recent global economic recession. For each policy, we analyze its impacts on the retail price, the sales, and the performance of a two-level supply chain involving a manufacturer and a retailer. We find that both the U.S. and the Chinese policies are useful to increasing the sales and improving the supply chain profitability; but, implementing the U.S. policy may raise the expected retail price whereas executing the Chinese policy may not result in a rise of the expected price. Next, we propose a three-stage approach to examine the efficiency of each government's policy, find the maximum target values - i.e., additional sales and system-wide profit surplus- that the government can realize by implementing its policy, and calculate the minimum budget needed to achieve the targets. We show that the U.S. policy is more likely to be efficient if the retailer is stronger in negotiating the retail prices with consumers; but, the Chinese policy with a proper reduction percentage in the sales tax rate may be also efficient when the retailer has a weak bargaining power. By comparing the U.S. and the Chinese policies, we provide conditions under which each policy may be more proper for stimulating the automobile market.


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Biography:
　

Dr. Mingming Leng is an Associate Professor of Operations Management in the Department of Computing and Decision Sciences at Lingnan University, Hong Kong. Prior to joining Lingnan University, Dr. Leng worked at several companies in Beijing from July 1996 to August 2001, and studied for his Ph.D. degree in Management Science/Systems at McMaster University from September 2001 to August 2005.

 

He is currently interested in the game-theoretic analysis of diverse business-related problems. His other research interests include marketing-operations in-interface, finance-operations interface, accounting-operations interface, inventory management, and simulation. His papers have appeared in Operations Research, Production and Operations Management, Naval Research Logistics, IIE Transactions, European Journal of Operational Research, etc.


************************* ALL ARE WELCOME ************************

　

　

　

Host

:

Prof. Zhou Xiang, Sean

Tel

:

(852)2609-8319

Email

:

zhoux@se.cuhk.edu.hk

　

　

　

Enquiries

:

Prof. Nan Chen or Prof. Sean X. Zhou

　

:

Department of Systems Engineering and Engineering Management

　

　

CUHK

Website

:

http://www.se.cuhk.edu.hk/~seem5201

Email

:

seem5201@se.cuhk.edu.hk

　

　

　

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