Certified Supply Chain Professional (CSCP) Practice Exam

What is the function of the central database in an ERP system?

1. To store temporary files

2. To serve as a backup for external data

3. As a single storage location for all types of data

4. To facilitate external data sharing

The correct answer is: As a single storage location for all types of data

The function of the central database in an ERP (Enterprise Resource Planning) system is fundamentally to act as a single storage location for all types of data. This centralization is crucial because it ensures that data from various departments and functions within the organization—such as finance, human resources, manufacturing, and supply chain—are integrated and accessible from one source. Having a unified database minimizes data redundancy and inconsistency, enhances data accuracy, and improves reporting and analytical capabilities. By centralizing data storage, an ERP system allows for streamlined processes and improved collaboration among different departments, as everyone has access to the same up-to-date information. This centralized approach supports decision-making by providing a comprehensive view of the organization’s operations and performance. It plays a vital role in ensuring that all users can rely on the same data set, thereby fostering consistency across the organization’s functions.