and use the best policy for period 1 considered alone (at a cost of 102 + 85 = 187); or order in period 1 for both periods, and carry inventory into period 2 (at a cost of 85+29 =114).
The better policy is the latter one.
In period 3 there are three alternatives:
order in period 3, and use the best policy for periods 1 and 2 considered alone (at a cost of 102 + 114 = 216);