The 80-20 rule, that is the logic of the few having the greatest importance and the many having little importance has been broadened to include inventory situations. The term often used to refer to this logic is called what?
A) The Peter Principle
B) The Pareto Principle
C) Little's Law
D) The Parkinson Rule
E) The Elitist Conspiracy

Question

Quizplus · Accepted Answer

The 80-20 rule is commonly known as the Pareto Principle, which states that roughly 80% of effects come from 20% of causes. This principle is often applied to inventory management and other areas to identify the most important factors.

The 80-20 Rule, That Is the Logic of the Few