One-Dimensional Cutting Stock Optimization: A Case of Czech Distribution Company
The paper describes a real application of mathematical optimization models in a large Czech company
distributing iron goods. The problem consists in the optimization of cutting patterns of iron beams. The company buys the
beams of given shape from iron and steel works and they are delivered always in given sizes. The consumers have their
specific demand on the beam sizes. The problem is to optimize cutting of source beams into consumer’s sizes. This
formulation is a standard integer linear programming problem. In our application it was necessary to modify the standard
formulation with respect to several additional requirements of the company. A decision support system for processing of
beams in company stocks is proposed. The system was built in MS Excel environment as the add-in application. The system
makes it possible to generate cutting patterns according to the consumer’s order and to optimize the cutting process. The
model was written in LINGO modeling language and we use built-in LINGO solver for solving the optimization problem.
The model was verified in the company and now it is being applied and incorporated into the company business system.
Keywords - Cutting stock problem, Integer programming, Optimization, LINGO, Excel.