In this article, an integrated model is developed in which a manufacturer purchases raw materials from a supplier, and then produces finished products/goods, after that delivers them to a buyer. In the intended model production rate is assumed as a function of demand rate and customer demand rate is time dependent. To make the model more realistic the effect of inflation and time value of money is also taken into consideration. The concept of the model is illustrated through the numerical example and sensitivity analysis with respect to the system parameters is also performed.