If the company decides to downsize and keep only 3 warehouses, how many units of
inventory will the company need to carry at each of the three warehouses?
Assume they will
continue to pursue a 2.5% stockout rate. (Choose the closest answer)

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Question 9
2 out of 2 points
(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. (Choose the closest answer)

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Question 10
3 out of 3 points
(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. (Choose the closest answer)
Calculate how much it would cost then multiply by exchange rate

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Question 11
3 out of 3 points
(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. (Choose the closest answer)