APICS Certified Supply Chain Professional (CSCP) — Question 332

Implementation of electronic data interchange (EDI) would be most appropriate for a company that wants to use:

Answer options

• A. radio frequency technology to identify a container.
• B. encoded information to be read by electronic readers.
• C. standard digital forms for purchase orders.
• D. a bottom-up method to develop stock keeping unit (SKU) forecasts.

Correct answer: C

Explanation

The correct answer is C because EDI is designed to facilitate the exchange of standardized documents such as purchase orders electronically, streamlining transactions. Options A and B refer to identification and data encoding technologies that do not specifically relate to EDI, while D discusses a forecasting method not inherently linked to electronic data interchange.