Final answer:
The software that includes the purchasing system and order entry system in an EDI setup is known as application software. This system streamlines transaction processing in supply chain management.
Step-by-step explanation:
In the context of Electronic Data Interchange (EDI), which represents a method of business communication using a standardized format that allows the exchange of business information electronically, the correct answer to the student's question regarding the software that comprises the purchasing system at the origin and the order entry system at the destination is D. application software. EDI facilitates direct transactions between computers of different companies and is a vital component in supply chain management. Typically, in an EDI setup, translation software is used to convert internal company data into a standardized EDI format. A value-added network (VAN) is a private, hosted service that provides companies with a secure way to send and receive EDI transactions. The communications network, often the internet, is the medium by which these transactions are sent. However, it is the application software that specifically handles the end-to-end business processes like issuing purchase orders or processing orders.
Advancements in telecommunications have significantly reduced the costs of long-distance interactions, bolstering international trade and the management of global production and sales networks. Nowadays, a wide swath of digital products and services is readily transferable through high-speed communication networks, from computer software to financial advice, underpinning the modern economy's reliance on telecommunication infrastructures.