# 9 2 points if the company decides to increase the

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9. (2 POINTS) If the company decides to increase the number of warehouses to 5, how many units of inventory will the company need to carry at each of the five warehouses? Assume they will continue to pursue a 2.5% stockout rate. 3578
PART 4: Impact of Exchange Rates on Manufacturing A European car company is trying to decide if they should manufacture their vehicles for the US market in Europe, or in the United States. Please do the calculations that will help this company come to a decision.
10. (3 POINTS) Suppose the exchange rate is near 1 Euro = \$1.30. What would be the profit for the European car company (in Euros) if they manufactured their car in Europe? Remember, they have to pay the import tax.
11. (3 POINTS) Suppose the exchange rate is near 1 Euro = \$1.30. What would be the profit for the European car company (in Euros) if they manufactured their car in the United States? Remember, they avoid the import tax.