Which of the Following Is NOT a Benefit of EDI

question 42

Multiple Choice

Which of the following is NOT a benefit of EDI to retailers and their vendors?

• A) EDI reduces lead time.
• B) Information flows quicker so inventory turnover is higher.
• C) It improves overall quality of communication.
• D) It is a computer readable format that can be easily analyzed.
• E) EDI increases the desirability of the product for the end consumer.

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Definitions:

Price Elastic

A term related to price elasticity, which measures the responsiveness of the quantity demanded of a good or service to a change in its price.

Fewer Substitutes

A market condition where there are limited alternative products or services available, potentially leading to higher prices or less choice for consumers.

Unit Elastic

Describes a scenario where a change in the price of a good results in a proportional change in the quantity demanded or supplied.

Total Revenue

The total amount of money a firm receives by selling goods or services.