This paper developed an integrated inventory model which incorporates the effects of the time value of money and deteriorating items to find the optimal inventory policy from vendor’s procurement to buyer’ ordering. However, far too little attention has been paid to this research area. Hence, an integrated inventory model with deteriorating raw material and product over the finite horizon planning under inflationary condition was proposed in this study. In addition, the solution procedure was also developed to derive the optimal number of shipments and production time, which minimizes the present worth of joint total cost. Furthermore, a detailed numerical example and sensitivity analysis were also illustrated in the discussion section. The result indicated that the most significant parameter impact on the present worth of total joint cost is setup and ordering cost.