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Telfix Ltd is a mobile phone company. The demand for the phone is 12,500 per annum. Telfix buy the phones for KES 900 each. The

Telfix Ltd is a mobile phone company. The demand for the phone is

12,500 per annum. Telfix buy the phones for KES 900 each. The ordering

costs are KES 15,000 per order and the stock costs are KES 30 per phone

per annum.

a) Calculate the optimum order quantity.

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