Which system would be appropriate for forecasting return on investment with new suppliers?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

The Decision Support System (DSS) is particularly well-suited for forecasting return on investment with new suppliers as it is designed to assist in decision-making processes by analyzing data and providing insightful information. A DSS typically integrates data from various sources, allowing users to model different business scenarios and evaluate potential outcomes based on various assumptions.

In the context of forecasting ROI with new suppliers, a DSS would enable businesses to input different variables such as costs, supplier reliability, market conditions, and more. It can process these inputs using analytical models to predict financial outcomes and help users assess which suppliers may yield the best returns. This makes it an essential tool for strategic planning and investment decisions.

Other systems, such as Executive Support Systems (ESS), Transaction Processing Systems (TPS), and Management Information Systems (MIS), serve different functions. An ESS focuses on high-level reporting for executives, a TPS manages and processes day-to-day transactions, and an MIS provides summarized data but lacks the analytical capabilities found in a DSS for complex forecasting tasks. Therefore, the DSS is distinctly positioned to provide comprehensive analytical insights that facilitate informed decision-making regarding new suppliers and their anticipated return on investment.

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