Which of the following inventory solutions states that roughly 20% of the number of components account for 80% of the product's cost?
A) Economic Order Quantity (EOQ).
B) Enterprise Resource Planning (ERP).
C) Material Requirements Planning (MRP).
D) ABC Analysis.

Question

Quizplus · Accepted Answer

The statement about 20% of components accounting for 80% of the cost is a key principle of ABC Analysis (also known as Pareto Analysis). The other options, EOQ, ERP, and MRP, do not specifically address the distribution of costs among components in this way.

Which of the Following Inventory Solutions States That Roughly 20