Abstract: In this paper, an inventory model with finite and
constant replenishment rate, price dependant demand rate, time
value of money and inflation, finite time horizon, lead time and
exponential deterioration rate and with the objective of maximizing
the present worth of the total system profit is developed. Using a
dynamic programming based solution algorithm, the optimal
sequence of the cycles can be found and also different optimal
selling prices, optimal order quantities and optimal maximum
inventories can be obtained for the cycles with unequal lengths,
which have never been done before for this model. Also, a
numerical example is used to show accuracy of the solution
procedure.