Adriana Cristina Cherri

Abstract
This paper studies the process of cutting steel bars in a truck suspension factory with the objective of reducing its inventory costs and material losses. A mathematical model is presented that focuses on decisions for a medium-term horizon (4 periods of 2 months). This approach addresses the one-dimensional 3-level integrated lot sizing and cutting stock problem, considering demand, inventory costs and stock level limits for bars (objects-level 1), springs (items-level 2) and spring bundles (final products-level 3), as well as the acquisition of bars as a decision variable. The solution to the proposed mathematical model is reached through an optimization package, using column generation along with a method for achieving integer solutions. The results obtained with real data demonstrate that the method provides significantly better solutions than those carried out at the company, whilst using reduced computational time. Additionally, the application of tests with random data enabled the analysis of both the effect of varying parameters in the solution, which provides managerial insights, and the overall performance of the method.

Abstract
In cutting processes, one of the strategies to reduce raw material waste is to generate leftovers that are large enough to return to stock for future use. The length of these leftovers is important since waste is expected to be minimal when cutting these objects in the future. However, in several situations, future demand is unknown and evaluating the best length for the leftovers is challenging. Furthermore, it may not be economically feasible to manage a stock of leftovers with multiple lengths that may not result in minimal waste when cut. In this paper, we approached the cutting stock problem with the possibility of generating leftovers as a two-stage stochastic program with recourse. We approximated the demand levels for the different items by employing a finite set of scenarios. Also, we modeled different decisions made before and after uncertainties were revealed. We proposed a mathematical model to represent this problem and developed a column generation approach to solve it. We ran computational experi-ments with randomly generated instances, considering a representative set of scenarios with a varying probability distribution. The results validated the efficiency of the proposed approach and allowed us to derive insights on the value of modeling and tackling uncertainty in this problem. Overall, the results showed that the cutting stock problem with usable leftovers benefits from a modeling approach based on sequential decision-making points and from explicitly considering uncertainty in the model and the solution method. (c) 2022 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license ( http://creativecommons.org/licenses/by-nc-nd/4.0/ )

Abstract

Abstract
When dealing with cutting problems, the generation of usable leftovers proved to be a good strategy for decreasing material waste. Focusing on practical applications, the main challenge in the implementation of this strategy is planning the cutting process to produce leftovers with a high probability of future use without complete information about the demand for any ordered items. We addressed the two-dimensional cutting stock with usable leftovers and uncertainty in demand, a complex and relevant problem recurring in companies due to the unpredictable occurrence of customer orders. To deal with this problem, a two-stage formulation that approximates the uncertain demand by a finite set of possible scenarios was proposed. Also, we proposed a matheuristic to support decision-makers by providing good-quality solutions in reduced time. The results obtained from the computational experiments using instances from the literature allowed us to verify the matheuristic performance, demonstrating that it can be an efficient tool if applied to real-life situations.

Abstract