A manufacture has the following information on its major product.

Regular time production capacity = 2600 units/period

Overtime production costs = Rs. 12/unit

Inventory costs = Rs. 2 unit/period

Backlog costs = Rs. 5/unit/period

Beginning inventory  = 400 units

        Demand (in units) for period 1,2,3,4 is 4000 , 3200, 2000 and 2500 respectively. Develop a level output plan that filed zero inventory at the end of period 4, What costs result from this plant ?

Operations Management 2011

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