This paper investigates a double-source queuing-inventory system with a finite buffer operating under a hybrid replenishment policy. When the inventory level decreases to the reorder point s, a regular order of fixed size Q = S – s is placed with a slow but economical supplier, where S denotes the maximum warehouse capacity. If the inventory level further drops below a lower threshold r (r < s), the ongoing regular order is canceled and an emergency order is submitted to a faster yet more expensive supplier in order to restore the inventory to level S upon delivery. The steady-state probability distribution of the system is obtained, and analytical expressions for key performance measures are derived.
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