Estimated Order Quantity, Sale for Sale, Period Order Quantity and Cash-to-cash Cycle are all the heuristics that need to be followed while making inventory decisions. Option E is the correct answer.
- All of the given options are rules of thumb while making an inventory decision.
- Estimated Order Quantity or EOQ is the number of additional units that a firm must place with respective to each specific order, so that the company can ensure that the inventory costs can be as minimal as possible.
- Period Order Quantity, is the pre-fixed number of orders that must be placed that is calculated over a specific period of time.
- Cash-to-cash Cycle refers to the time period between which the companies/firms make payments to inventory suppliers, and receive the cash for their goods and/or services from their customers.
Therefore, it is clear that all the above options are correct.
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