As the value of deteriorating item is decreasing with time, suppliers often offer quantity discounts to retailers and motivate them to increase their order quantity. When getting benefit from quantity discounts, retailers often adjust their sell price and order quantity to increase their total profit.Considering the factor of time value of capital, a pricing and inventory model based on quantity discounts including items with exponentially deteriorating rate is proposed.An algorithm and a numerical example to solve and illustrate the model are presented.