A practical instance of a one-dimensional cutting stock problem arising fre
quently in the paper industry is considered. Given a set of raw paper rolls
of known length and width, a set of product paper rolls of known length (e
qual to the length of raw paper rolls) and width, practical cutting constra
ints on a single cutting machine, and demand orders for all products, the p
roblem requires the determination of an optimal cutting schedule to maximiz
e the overall cutting process profitability while satisfying all demands an
d cutting constraints. A purely mixed-integer linear programing (MILP) mode
l is developed that does not require the a priori determination of all feas
ible cutting combinations. A complex objective function including trim loss
, overproduction, knife (pattern) changeover costs, and format (raw materia
l type) changeover costs is optimized. A salient feature of the model is th
at intermediate demand orders are taken into consideration as an integral p
art of the formulation. A number of example problems, including an industri
al case study, are employed to illustrate the applicability and computation
al performance of the proposed method.