What implies that about 20% of the inventory items will account for about 80% of the inventory value?a.Friedman’s lawb.Pablo’s propositionc.Little’s lawd.Pareto’s law
Question
What implies that about 20% of the inventory items will account for about 80% of the inventory value?a.Friedman’s lawb.Pablo’s propositionc.Little’s lawd.Pareto’s law
Solution
The principle that implies that about 20% of the inventory items will account for about 80% of the inventory value is Pareto's law. This principle is also known as the 80/20 rule, which states that roughly 80% of the effects come from 20% of the causes. In the context of inventory management, it suggests that a small proportion of items (20%) make up the majority of the inventory value (80%).
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