Service function chain (SFC) is a series of ordered virtual network functions (VNFs) for processing traffic flows in the virtualized networking environment of future networks. In this paper, we present a mathematical model and dynamic programing based scheme for solving the problem of SFC placement on substrate networks equipped with network function virtualization (NFV) capability. In this paper, we first formulate the overall cost of SFC placement as the combination of setup cost and operation cost. We then formulate the SFC placement problem as an integer linear programing (ILP) model with the objective of minimizing the overall cost of setup and operation, and propose a delay aware dynamic programming based SFC placement scheme for large networks. We conduct numeric simulations to evaluate the proposed scheme. We analyze the cost and performance of network under different optimization objectives, with and without keeping the order of VNFs in SFC. We measure the success rate, resources utilization, and end to end delay of SFC on different topologies. The results show that the proposed scheme outperforms other related schemes in various scenarios.