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Glossary Logistics / Term

Pareto

A means of sorting data for example. For example, number of quality faults by frequency of occurrence. An analysis that compares cumulative percentages of the rank ordering of costs, cost drivers, profits or other attributes to determine whether a minority of elements have a disproportionate impact. For example, identifying that 20 percent of a set of independent variables is responsible for 80 percent of the effect. Also see: 80/20 Rule.

Permanent link Pareto - Creation date 2021-12-06


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