Management Information System (MIS) Practice Exam

The main goal of an enterprise resource planning system is to?

1. Support the coordination of suppliers, production, and distribution

2. Integrate all facets of the business including planning and manufacturing

3. Emulate or enhance human capabilities

4. Provide detailed information for managing a firm

The correct answer is: Integrate all facets of the business including planning and manufacturing

The central objective of an enterprise resource planning (ERP) system is to integrate all facets of the business, which includes planning, manufacturing, sales, human resources, and finance. By providing a unified platform where different functions can share information and communicate effectively, ERP systems eliminate data silos and enhance collaboration across the organization. Integration is crucial because it allows for streamlined processes and better decision-making. When all departments operate on a single system, there is real-time access to data, which improves the accuracy of forecasts and ensures that all areas of the company are aligned with overall business goals. This holistic approach not only boosts efficiency but also enables better resource management and planning. For context, while supporting the coordination of suppliers, production, and distribution is part of ERP systems, it is not their main goal. Emulating or enhancing human capabilities relates more to artificial intelligence and automation, not specifically to ERP. Providing detailed information for managing a firm is a benefit of ERP systems but not their primary aim; instead, that detail serves to enhance the integrated management of business processes. Thus, the integration of all business facets stands out as the defining characteristic and goal of an ERP system.