What Is Wrong with the 80-20 Scheme

question 118

Multiple Choice

What is wrong with the 80-20 scheme?

• A) It is too broad to segment customers in this way
• B) Customers who are labelled could change and future advertising misses them
• C) It does not consider the differences among the 80 percent in the "rest" segment
• D) It does not consider the differences between 80 percent and the 20 percent
• E) It does not break down the variables within the remaining 20 percent

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Definitions:

Optimal Strategies

Approaches or methodologies determined to be the most effective and efficient in achieving specific goals or outcomes, often within the context of games, economics, or operations research.

Level Scheduling

A production strategy that aims to maintain a consistent production rate or workload, smoothing out peaks and troughs in demand to optimize operations.

Pure Chase Strategy

A production strategy where the production rate is adjusted to match demand, minimizing inventory levels at the cost of potentially greater adjustment costs.

Part-Time Workers

Employees who work less than the standard full-time hours, typically offering flexibility and cost savings for businesses while accommodating the workers' other commitments.