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Covered CA

What if someone shares custody of the children & changes the dependents claimed annually, how is the household size determined (for instance, 2 children are claimed in odd years and 1 child is claimed in even years)?

A household includes individuals for whom a taxpayer claims a deduction for a personal exemption. Hence, the household size would depend on how many individuals are claimed. In this situation, it would be a household size of 3 in the odd years and a household size of 2 in the even years.
See the following link for a more detailed explanation and examples:
http://www.cbpp.org/files/Household-Definitions-Webinar-7Aug13.pdf