A combined cutting-stock and lot-sizing problem

A combined cutting-stock and lot-sizing problem with a joint setup cost is formulated under static and deterministic conditions. Reducing this problem by disregarding the joint setup cost and integer lot sizes results in a non-linear minimization problem with a concave objective function and linear constraints. Solution procedures for this type of optimization problem are considered and some specialized heuristics are suggested. Numerical examples to indicate the performances of the procedures are also presented.