Month 2

Order Cycle: 1 Month

Lead Time: 2 Months

Target Service Level: 95%

Unit Cost: $5.00

Order Cost: $2.00

Carry Rate: 20%

Now that you have completed Month 1, you will see that your final demand for Month 1 was 7, and that was taken away from what you have available, leaving you with 24. This remaining inventory is carried over to Month 2 so your beginning on hand is 24.


Your receipts for this month is still 0 as expected. Next month, Month 3, you will receive what you ordered in Month 1. What you order this month will arrive in Month 4. 

The Buying Game Month 2

Month 2

Receipt Month 2
Begin On Hand Month 2
Available Month 2
Demand Month 2
Ending On Hand Month 2

Month 1

Receipt Month 1
Begin On Hand Month 1
Available Month 1
Demand Month 1
Ending On Hand Month 1

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