Which of the following is an example of a Transaction Processing System (TPS)?

A Transaction Processing System (TPS) is designed to handle a large volume of routine, recurring transactions efficiently and accurately. A Point of Sale (POS) system serves as a prime example of this type of system because it records sales transactions, manages inventory, and processes payments at the point where a customer completes their purchase. The primary function of a POS system is to process transactions in real-time, which aligns perfectly with the core purpose of a TPS.

In contrast, Customer Relationship Management (CRM) systems focus on managing a company's interactions with current and potential customers, emphasizing relationship-building rather than processing transactions. Enterprise Resource Planning (ERP) systems integrate various business processes across departments but do not exclusively focus on the execution of transactional activities. Decision Support Systems (DSS) are designed to assist in decision-making and analysis, which is quite different from the transactional data processing focus of a TPS. Each of these systems has its unique functionalities, but the direct and time-sensitive handling of transactions characterizes the Point of Sale system as a quintessential example of a Transaction Processing System.