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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
boxesmonth mainly using inventory to absorb the uneven demand but allowing some
backlog. They intend to start with 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 box per month. The regular production cost per box is LE
while the overtime cost per box is LE The holding cost is LE per box per month and
the backorder cost is LE per box per month
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