In this paper we assume that the customers arrive at a single server queueing system according to Markovian Arrival process. When the system is empty, the server goes for vacation and produces inventory for future use during this period. The maximum processed inventory at a stretch isL. The inventory processing time follows phase type distribution. These are required for the service of customers-one for each customer. The server returns from vacation when there are N customers in the system. The service time follows two distinct phase type distributions depending on whether there is processed items or no processed item available at service commencement epoch. We analyse the distributions of time till the number of customers hit N or the inventory level reaches L, idle time, the distribution of time until the number of customers hit N and also the distribution of the number of inventory processed before the arrival of first customer. Also we provide the distribution of a busy cycle, LSTs of busy cycles in which no item is left in the inventory and at least one item is left in the inventory. We perform some numerical experiments to evaluate the expected idle time, standard deviation and coefficient of variation of idle time of the server.