Which of the following is a consequence of an EDI system?

Question

Quizplus · Accepted Answer

EDI (Electronic Data Interchange) systems provide a paperless way of exchanging business documents between suppliers, shippers, and the purchasing firm. This eliminates most paperwork and its associated costs, making the supply chain more efficient. Therefore, option B is the correct choice. Production costs are reduced, not increased, due to the efficiency of EDI systems. EDI may not be simple, but it improves communication among the parties, so option C is incorrect. The flexibility and responsiveness of the supply system can be increased by EDI since it allows for faster and more accurate communication, so option D is incorrect. The potential for industrial espionage is not necessarily higher due to EDI, so option E is incorrect.

Which of the Following Is a Consequence of an EDI