This paper formulates a multi-level supply chain network with a single producer, multi distributors and multi retailers during a finite planning horizon. The demand rate is assumed to be exponential function of time; shortages are allowed and completely backlogged. The stock is assumed to undergo deterioration as soon as it is produced. The production rate is dependent on demand rate and greater than the demand rate. Optimal solution for the proposed model is derived and using a numerical example, the behavior of the model is analyzed.