Abstract: This article studies inventory system for short-life cycle products,assuming a fixed life cycle and a perishable product which value deteriorates as the item gets aged Lead time can be reduced by paying crashing cost to vender. If an item is out of stock in an inventory system in which shortage is allowed,the supplier may offer a negotiable price discount to the loyal,patient and captive customers to compensate for the inconvenience of backordering. Solution for this type of problem is worked out by capturing the deterioration in value by increasing holding cost. The demand of short-life cycle products is represented by ramp type demand. Numerical example is provided to illustrate the solution procedure.

Key words: short-life cycle product, lead time, price discount, ramp type demand, backorder