Since I'm still learning the basics of actually moving military units and such I'm using arcade mode until I feel ready to tackle the actual logistics system. I have successfully invaded China with the logistics system enabled, but I found it too much to try and teach myself both logistics and combat mechanics at the same time.
Anyway, my question is how supply works in arcade mode exactly. I know they draw supply directly from your supply stores, but after I have conducted an encirclement the enemy forces inside eventually get a "lack of supplies" combat modifier. It didn't occur right away, but it does come up after some period of time. I guess it is possible to cut units off from supply in arcade mode then?
Yes. With arcade mode you need to have an uninterupted line to the supply source. This can be land, sea, or a combination of both.