6) Efficient supply chains A) respond quickly to demand. B) have higher margins because price is not a prime customer driver. C) maintain buffer inventory to deal with demand/supply uncertainty. D) maximize performance at a minimum cost. 7) What is the NPV if KFC expected profit in Period 1 is $15,000, and their profit in Period 0 is $20,800 ? (Discount rate is 20\%) A) $5,800 B) $35,800 C) $12,500 D) $33,300 E) $8,300 8) If KFC's cost was $5,000, their demand was 3,200 , their revenue was $1.95 per piece of chicken what is their net profit. A) $1.248 B) $1,240 C) 52,480 D) 56,240 E) $6,550 9) KFC is expecting annual demand to rise at 6% per month in Oshkosh. There current demand is 1500 per month 1 (current month) and their cost is $0.85 per piece of chicken what is their total cost in month five. (round up demand only in month 5) A) $1906.80 B) $1706.80 C) $1705.95 D) $1609.50 E) $1609.90 10) Which of the following is an advantage of manufacturer storage with direct shipping? A) Transportation costs are low because the average outbound distance to the end consumer is small and package carriers are used to shipping the product. B) Supply chains save on the fixed cost of facilities, because the need for other warehousing space in the supply chain has been eliminated. . C) Response times tend to be small because the order has to be transmitted from the retailer to the manufacturer. D) Order tracking is easy to implement because of the complete integration of information systems at both the retailer and the manufacturer. E) The handling of returns is likely to be simple and inexpensive, improving customer satisfaction