Abstract
In this paper, we consider a production inventory system with service time and production vacations. Customers arrive in the system according to a Poisson process requiring service from a single server. The single production facility produces items according to an (s, S) policy, and it takes a vacation of random duration once the inventory level becomes (S. It is assumed that all arriving customers are lost during the stock out period. We first derive the stationary joint distribution of the queue length and the on-hand inventory level in product form. Then, we compute explicitly some performance measures, and develop a cost function based on these performance measures. Finally, some numerical results are presented.
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