DIMENSION table is one that describes the BUSINESS ENTITIES of an enterprise, represented as hierarchical, categorical information such as time, departments, locations, and products. Dimension tables are sometimes called lookup or reference tables. In a relational DATA modeling, for normalization purposes, country lookup, state lookup, COUNTY lookup, and city lookups are not merged as a single table. In a dimensional data modeling (star schema), these tables would be merged as a single table called LOCATION DIMENSION for performance and slicing data requirements. This location dimension helps to compare the sales in one region with another region. We may see good sales profit in one region and loss in another region. If it is a loss, the reasons for that may be a new competitor in that area, or failure of our marketing strategy etc.

Dimension table is one that describes the business entities of an enterprise, represented as hierarchical, categorical information such as time, departments, locations, and products. Dimension tables are sometimes called lookup or reference tables. In a relational data modeling, for normalization purposes, country lookup, state lookup, county lookup, and city lookups are not merged as a single table. In a dimensional data modeling (star schema), these tables would be merged as a single table called LOCATION DIMENSION for performance and slicing data requirements. This location dimension helps to compare the sales in one region with another region. We may see good sales profit in one region and loss in another region. If it is a loss, the reasons for that may be a new competitor in that area, or failure of our marketing strategy etc.