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A deteriorating inventory model using time-value of money with price dependent declined quadratic demand is developed for a deterministic inventory system. This study applied the discounted cash flows (DCF) approach for problem analysis. The objective of this model is to maximize the net present value profit so as to determine the optimal time period and order quantity. The numerical analysis shows that an appropriate policy can benefit the retailer and that policy is important, especially fordoi:10.12988/ams.2014.43178 fatcat:qr3nh3djazd6dduw74fzzj534q