Abstract
This paper generalizes the single period inventory model, known as the newsboy problem, by considering both the partial returns and the additional orders, In the model, the partila returns in the case of surplus, and the additional orders in the case of shortrage are, respectively, allowed less than or equal to the maxima permitted.A general solution of obtaining the potimal order quantity which maximizes the expected profit is derived. Some mumerical examples for the illustrative demand distributions are also shown.
