The "Pareto Principle" is:

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The Pareto Principle, also known as the 80/20 rule, is commonly used in logistics to classify inventory into categories based on their level of importance or contribution to overall performance. This principle states that roughly 80% of effects come from 20% of causes, and in logistics, this can apply to factors such as product sales or customer demand. Therefore, the Pareto Principle is used to develop fine line inventory classification in logistics.

The "Pareto Principle" Is