APICS Certified Supply Chain Professional (CSCP) — Question 443

Electronic data interchange (EDI) is best defined as a:

Answer options

• A. process of generating and testing engineering specifications on a computer workstation.
• B. system that updates and tracks interactions with customers.
• C. technique that deals with analysis and planning of logistics and manufacturing.
• D. technology to support the paperless flow of trading documents.

Correct answer: D

Explanation

The correct answer is D because EDI specifically refers to the technology that enables the seamless electronic exchange of trading documents, eliminating the need for paper. Options A, B, and C describe different processes and systems that do not pertain to the core definition of EDI.