The 80/20 rule suggests that business owners:
A)try to exercise control 80% of the time over 20% of their inventory.
B)identify those inventory items that represent the greatest value to the business and focus inventory control efforts on them.
C)focus on the 80% of their inventory that only produces 20% of their results in order to improve performance.
D)try to earn 20% more out of the 80% of their inventory that isn't producing.

Question

Quizplus · Accepted Answer

The 80/20 rule suggests that 80% of a business's profits come from 20% of its products. Therefore, it is most beneficial for business owners to identify those inventory items that represent the greatest value to the business and focus their inventory control efforts on them. This allows them to maximize profits and prioritize resources on the most valuable products.

The 80/20 Rule Suggests That Business Owners