Optimization of the cutting-stock process

In this paper we deal with the problem of cost minimization in the General One-Dimensional Cutting Stock Problem in cases where the available material is not sufficient to satisfy the total demand. The decision about which order lengths will be cut and what will the cutting plan be, has to be made. The level of stock in the warehouse is taken into consideration as an important factor that affects the total inventory costs as well as the opportunity costs due to the nonfulfilment of the total order. The use of the model is demonstrated with a practical example.