The N-Policy in a multi-server stochastic production inventory system is a strategy used to manage inventory effectively within a dynamic and unpredictable manufacturing setting. The system comprises c identical servers that are activated sequentially when the queue length and inventory levels are sufficient, and remain idle if these conditions are not met. The Matrix Geometric method is employed to analyze the model’s characteristics. The study establishes both necessary and sufficient conditions for the system’s stability. Performance metrics are defined, and a cost function based on these metrics is formulated. Numerical examples and graphs are provided to illustrate the behavior of the cost function.