Determining Economic Production Quantity in the Presence of Varying Item Size and Stochastic Demand

In this era of industrial competitiveness, the zeal for manufacturing industries to optimally establish cost-effective production-inventory levels of items is paramount. This is however a considerable challenge when the item produced for stock varies in size with demand uncertainty. Two major problems are usually encountered: (i) determining the most desirable period during which to produce additional units of a specific size of item in question and (ii) determining the economic production quantity (EPQ) of a specific size of item given a periodic review production-inventory system when demand is uncertain.