Abstract: This article considers a continuous review retrial inventory system at a service facility, wherein an item demanded by a customer is issued after performing service on the item. The arrival time points of customers form a Poisson process. The inventory replenished according to an policy and the lead times are assumed to follow an exponential distribution. The demands that occur during the stock out period or the server busy (regular or working vacation) are permitted to enter into the orbit of infinite size. When the inventory level is zero or no demands in the system or both, server goes to a working vacation which is exponentially distributed.