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Supply Chain Management (SCM) MCQs
The Pareto Principle (80/20 rule) suggests that ____.
19. The Pareto Principle (80/20 rule) suggests that ____.
- 80% of sales come from 20% of customers
- 20% of sales come from 80% of customers
- 80% of inventory turnover comes from 20% of products
- 20% of inventory turnover comes from 80% of products
Answer
The correct answer is: A) 80% of sales come from 20% of customers
Explanation
The Pareto Principle states that a significant portion of outcomes (80%) comes from a small portion (20%) of causes.