This paper concerns the problem of determining the spare inventory level for multi-echelon repairable-item inventory system with finite number of operating items. We consider the system which has several bases and a central depot. When an item fails, it is dispatched to a repair facility and, a spare, if available, is plugged in immediately. When the failed item is repaired, it is sent to the base and either is used to fill a backorder or is stored at a spare inventory point. Using queueing network, we develop an algorithm to find the spare inventory level which minimizes the total expected cost and, simultaneously, satisfies a specified minimum fill rate. The results of the algorithm clearly indicate that the algorithm successfully generate output with optimal solution.