Which type of information system is designed to support daily operations?

• A. Executive Information System
• B. Decision Support System
• C. Management Information System
• D. Transaction Processing System

Answer: (D)

The Transaction Processing System (TPS) is specifically designed to handle the daily operations of an organization. It manages transactions, which are routine, data-driven activities such as sales order entries, payroll processing, and inventory management. The core function of a TPS is to capture and process data generated from these day-to-day activities accurately and efficiently, ensuring that organizational processes run smoothly and that there is a reliable record of transactions.

This system plays a vital role in maintaining the operational backbone of a business, providing essential data that can be used for reporting and analysis. By efficiently processing transactions, a TPS helps to ensure that businesses can manage customer orders, record sales, and handle other routine operations without disruption.

In contrast, other systems mentioned, such as Executive Information Systems and Decision Support Systems, are more suited for higher-level management functions, focusing on strategy and decision-making rather than the execution of daily operational tasks. Management Information Systems also provide information for managerial decision-making but typically aggregate and summarize data from the TPS and other sources rather than directly processing the transactional data itself.