Certified Supply Chain Professional (CSCP) Practice Exam

What do databases primarily serve as?

1. Temporary storage units

2. Repositories for electronic records and information gathered from internal and external sources

3. Physical storage for hard copies

4. Automated cash registers

The correct answer is: Repositories for electronic records and information gathered from internal and external sources

Databases primarily serve as repositories for electronic records and information gathered from both internal and external sources. They facilitate the organization, management, and retrieval of large volumes of data, enabling businesses to analyze and make informed decisions based on that data. This functionality is essential in supply chain management, where access to accurate and up-to-date information can impact inventory control, forecasting, and overall operational efficiency. While temporary storage units, physical storage for hard copies, and automated cash registers can serve specific functions in data handling and management, they do not capture the full essence of what databases are designed to do. Databases are structured to maintain persistence in data storage, making it accessible and manageable over time, which is critical for any organization looking to leverage data effectively.