Question

Consider the following computer applications:

(1) At a catalog sales firm, as phone orders are entered into their computer, both inventory and credit are immediately checked.
(2) A manufacturer's computer sends the coming week's production schedule and parts orders to a supplier's computer.
Which statement below is true for these applications?
A) Both applications are examples of EDI.
B) Both applications are examples of on-line real-time processing.
C) The first application is an example of EDI and the second is an example of on-line real-time.
D) The first application is an example of on-line real-time and the second is an example of EDI.

Answer 1

The first application is an example of on-line real-time processing as it involves immediate data processing. The second application is an example of EDI as it represents the electronic exchange of business information between organizations.

Step-by-step explanation:

The question involves identifying the nature of two computer applications in a business context. Specifically, it asks to determine whether each application is an example of Electronic Data Interchange (EDI) or on-line real-time processing. EDI is a system that allows the electronic exchange of business information in a standardized format between organizations, which can include transferring purchase orders, invoices, and other official documents. On the other hand, on-line real-time processing refers to the immediate processing of data as soon as it is entered into a system, without any delays.

The first application is on-line real-time processing because as soon as phone orders are received, the system immediately checks inventory and credit status. The second application is EDI because a manufacturer's production schedule and part orders are sent to a supplier's computer, which implies a systematized exchange of business information.

Therefore, the correct answer to the question is D) The first application is an example of on-line real-time and the second is an example of EDI.