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They now want to evaluate a plan that calls for a steady rate of regular output ( 2 5 0 0 0 0 boxes /

They now want to evaluate a plan that calls for a steady rate of regular output (250000
boxes/month), mainly using inventory to absorb the uneven demand but allowing some
backlog. They intend to start with 1000 box inventory on hand in the first period. They
decided to use overtime to make up for lost output. The maximum amount of overtime
output per period is 35000 box per month. The regular production cost per box is 45 LE
while the overtime cost per box is 50 LE. The holding cost is 5 LE per box per month and
the backorder cost is 10 LE per box per month

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