This study presents a two-level inventory distribution system with one-upper level facility(warehouse) in first echelon and n-lower level facilities(stores) in the second echelon. The demand process at the upper level is induced by the aggregated backorder processes of n independently operated lower level facilities in parallel. For the upper level and the lower level we find the decision points and the distribution function of the aggregate backorders from n-stores. Optimal allocation units and expected system profits are obtained. If the product is of great enough importance to the customer, echelon structure will include a shadow installation. Also, this case is analyzed. Numerical examples are presented to illustrate the results for each case.