Question

What does EDI stand for___________.

1) Electronic Data Interchange
2) Electronic Document Integration
3) Electronic Data Integration
4) Electronic Document Interchange

Answer 1

EDI stands for Electronic Data Interchange, which is the electronic exchange of business documents between trading partners using a standardized format. It allows for automation, reducing manual data entry and improving efficiency.

Step-by-step explanation:

EDI stands for Electronic Data Interchange. It is the electronic exchange of business documents, such as purchase orders and invoices, between trading partners using a standardized format. EDI allows for the automation of processes, reducing the need for manual data entry and improving efficiency.

For example, when a company sends a purchase order to a supplier using EDI, the order is transmitted electronically, eliminating the need for paper-based documents and manual data entry. The supplier receives the order electronically and can process it automatically, reducing errors and saving time.

Therefore, the correct answer is 1) Electronic Data Interchange. This technology is commonly used in supply chain management and business-to-business transactions.