Abstract
The diversification and individualization of market needs have led to an increase in the variety of products, allowing customers to customize product specifications. Consequently, there is a shorter delivery time and significant fluctuations in order quantities for each product. These fluctuations promote an increase in demand uncertainty. This study considers a multi-item, multi-stage production, and inventory system for the general manufacturing industry. It employs Average Value-at-Risk (AVaR) and game-theoretic concepts to analyze and estimate the risk of the quantity demanded, proposing an optimal production and inventory system.