Pareto's law

17.07.2013 18:41

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Pareto's law

1) Concept applicable in many circumstances where the largest bulk (eg of orders) is attributable to the smallest source (eg customers). Thus it can often be said that 80 per cent of orders come from just 20 per cent of customers or, conversely, 80 per cent of revenue comes from 20 per cent of orders.

Often called the 80/20 rule and can be applied in many situations. See also Pareto principle.

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.179 (288 p.)


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