Decaying inventory under price discount with exponential demand

In this paper, an attempt has been made to develop an inventory model by incorporating the concept of price discount where the demand is deterministic and is increasing exponentially with time. Optimum lot size has been obtained. The inventory is decaying exponentially with time at a constant rate. Two models have been discussed. First model considers the all unit quantity discount and second model considers the incremental quantity discount. Numerical examples are given at the end of the paper.