The 80/20 Principle States That Roughly 80 Percent of a Product's

question 82

True/False

The 80/20 principle states that roughly 80 percent of a product's revenues come from only 20 percent of its buyers.

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Definitions:

Operations Manager

A professional responsible for overseeing, designing, and controlling the process of production and redesigning business operations.

Net Present Value

A financial metric used to evaluate the profitability of an investment or project, representing the difference between the present value of its cash inflows and outflows.

Effective Capacity

The maximum output rate or service capacity an operation, facility, or machine can achieve under normal conditions or constraints.

Process Cycle Time

The total time it takes to complete a series of tasks from start to finish in a process, often aimed at identifying efficiencies.