An integrated approach to the lot sizing and cutting stock problems

Various industries consist of the cutting stock and lot-sizing problems in successive stages. Traditionally, these two problems are dealt separately which may adversely affect the overall performance of the supply chain. In this paper, an integrated approach is advocated and a model is proposed to jointly optimize the changeover, inventory holding cost and trim loss for a paper mill. It also defines the sequence of the cutting patterns to be used during conversion process. Moreover, the relationship between the ensuing cycle service levels and the total joint costs is also discussed.