In this paper we consider inventory systems of multi-location. It is c
ommon to allow emergency lateral transshipments from local locations t
o the main depot. Here we propose a new model for the inventory system
of consumable items. The inventory system of each location and the ma
in depot is modeled by Markovian queueing networks. The transshipments
are modeled by the Markov Modulated Poisson Process which is a genera
lization of the Poisson process. (C) 1998 Elsevier Science Ltd. All ri
ghts reserved.