Markov-modulated Poisson processes for multi-location inventory problems

In this paper we consider inventory systems of multi-location. It is common to allow emergency lateral transshipments from local locations to the main depot. Here we propose a new model for the inventory system of consumable items. The inventory system of each location and the main depot is modeled by Markovian queueing networks. The transshipments are modeled by the Markov-Modulated Poisson Process which is a generalization of the Poisson process.