Question

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?

Answer 1

Answer:    The Pareto Principle

Explanation:  This principle, named after Vilfredo Pareto, states that in most events, due to 20% of causes, about 80% of effects occur. This is, in fact, a claim of unequal numbers of inputs and outputs, because Pareto is first and foremost an economist. According to his observation, which he initially conducted in Italy and later around the world, he saw that 20% of people own 80% of the land, thus establishing a ratio, that is, reflecting the imbalance between wealth and population. This principle is reflected in life in general and says that the items are generally not evenly distributed. This principle is also called Pareto Rule or 80/20 Rule.