IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v179y2010i1p169-18610.1007-s10479-008-0454-7.html
   My bibliography  Save this article

On the cutting stock problem under stochastic demand

Author

Listed:
  • Douglas Alem
  • Pedro Munari
  • Marcos Arenales
  • Paulo Ferreira

Abstract

This paper addresses the one-dimensional cutting stock problem when demand is a random variable. The problem is formulated as a two-stage stochastic nonlinear program with recourse. The first stage decision variables are the number of objects to be cut according to a cutting pattern. The second stage decision variables are the number of holding or backordering items due to the decisions made in the first stage. The problem’s objective is to minimize the total expected cost incurred in both stages, due to waste and holding or backordering penalties. A Simplex-based method with column generation is proposed for solving a linear relaxation of the resulting optimization problem. The proposed method is evaluated by using two well-known measures of uncertainty effects in stochastic programming: the value of stochastic solution—VSS—and the expected value of perfect information—EVPI. The optimal two-stage solution is shown to be more effective than the alternative wait-and-see and expected value approaches, even under small variations in the parameters of the problem. Copyright Springer Science+Business Media, LLC 2010

Suggested Citation

  • Douglas Alem & Pedro Munari & Marcos Arenales & Paulo Ferreira, 2010. "On the cutting stock problem under stochastic demand," Annals of Operations Research, Springer, vol. 179(1), pages 169-186, September.
    • Handle: RePEc:spr:annopr:v:179:y:2010:i:1:p:169-186:10.1007/s10479-008-0454-7
    DOI: 10.1007/s10479-008-0454-7
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10479-008-0454-7
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10479-008-0454-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. M. Avriel & A. C. Williams, 1970. "The Value of Information and Stochastic Programming," Operations Research, INFORMS, vol. 18(5), pages 947-954, October.
    2. D. Sculli, 1981. "A Stochastic Cutting Stock Procedure: Cutting Rolls of Insulating Tape," Management Science, INFORMS, vol. 27(8), pages 946-952, August.
    3. Jonathan Bard & David Morton & Yong Wang, 2007. "Workforce planning at USPS mail processing and distribution centers using stochastic optimization," Annals of Operations Research, Springer, vol. 155(1), pages 51-78, November.
    4. Albert Madansky, 1960. "Inequalities for Stochastic Linear Programming Problems," Management Science, INFORMS, vol. 6(2), pages 197-204, January.
    5. Elena V. Krichagina & Rodrigo Rubio & Michael I. Taksar & Lawrence M. Wein, 1998. "A Dynamic Stochastic Stock-Cutting Problem," Operations Research, INFORMS, vol. 46(5), pages 690-701, October.
    6. Belov, G. & Scheithauer, G., 2006. "A branch-and-cut-and-price algorithm for one-dimensional stock cutting and two-dimensional two-stage cutting," European Journal of Operational Research, Elsevier, vol. 171(1), pages 85-106, May.
    7. Gau, T. & Wascher, G., 1995. "CUTGEN1: A problem generator for the standard one-dimensional cutting stock problem," European Journal of Operational Research, Elsevier, vol. 84(3), pages 572-579, August.
    8. P. C. Gilmore & R. E. Gomory, 1961. "A Linear Programming Approach to the Cutting-Stock Problem," Operations Research, INFORMS, vol. 9(6), pages 849-859, December.
    9. Marco E. Lübbecke & Jacques Desrosiers, 2005. "Selected Topics in Column Generation," Operations Research, INFORMS, vol. 53(6), pages 1007-1023, December.
    10. Trkman, Peter & Gradisar, Miro, 2007. "One-dimensional cutting stock optimization in consecutive time periods," European Journal of Operational Research, Elsevier, vol. 179(2), pages 291-301, June.
    11. Laureano Escudero & Araceli Garín & María Merino & Gloria Pérez, 2007. "The value of the stochastic solution in multistage problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 15(1), pages 48-64, July.
    12. P. C. Gilmore & R. E. Gomory, 1963. "A Linear Programming Approach to the Cutting Stock Problem---Part II," Operations Research, INFORMS, vol. 11(6), pages 863-888, December.
    13. Dyckhoff, Harald, 1990. "A typology of cutting and packing problems," European Journal of Operational Research, Elsevier, vol. 44(2), pages 145-159, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alysson Costa & Lana Santos & Douglas Alem & Ricardo Santos, 2014. "Sustainable vegetable crop supply problem with perishable stocks," Annals of Operations Research, Springer, vol. 219(1), pages 265-283, August.
    2. Ronghua Meng & Yunqing Rao & Qiang Luo, 2020. "Modeling and solving for bi-objective cutting parallel machine scheduling problem," Annals of Operations Research, Springer, vol. 285(1), pages 223-245, February.
    3. Cherri, Adriana Cristina & Cherri, Luiz Henrique & Oliveira, Beatriz Brito & Oliveira, José Fernando & Carravilla, Maria Antónia, 2023. "A stochastic programming approach to the cutting stock problem with usable leftovers," European Journal of Operational Research, Elsevier, vol. 308(1), pages 38-53.
    4. Kallrath, Julia & Rebennack, Steffen & Kallrath, Josef & Kusche, Rüdiger, 2014. "Solving real-world cutting stock-problems in the paper industry: Mathematical approaches, experience and challenges," European Journal of Operational Research, Elsevier, vol. 238(1), pages 374-389.
    5. Schepler, Xavier & Rossi, André & Gurevsky, Evgeny & Dolgui, Alexandre, 2022. "Solving robust bin-packing problems with a branch-and-price approach," European Journal of Operational Research, Elsevier, vol. 297(3), pages 831-843.
    6. Claudio Arbib & Fabrizio Marinelli & Mustafa Ç. Pınar & Andrea Pizzuti, 2022. "Robust stock assortment and cutting under defects in automotive glass production," Production and Operations Management, Production and Operations Management Society, vol. 31(11), pages 4154-4172, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Melega, Gislaine Mara & de Araujo, Silvio Alexandre & Jans, Raf, 2018. "Classification and literature review of integrated lot-sizing and cutting stock problems," European Journal of Operational Research, Elsevier, vol. 271(1), pages 1-19.
    2. B. S. C. Campello & C. T. L. S. Ghidini & A. O. C. Ayres & W. A. Oliveira, 2022. "A residual recombination heuristic for one-dimensional cutting stock problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 30(1), pages 194-220, April.
    3. Delorme, Maxence & Iori, Manuel & Martello, Silvano, 2016. "Bin packing and cutting stock problems: Mathematical models and exact algorithms," European Journal of Operational Research, Elsevier, vol. 255(1), pages 1-20.
    4. Reinertsen, Harald & Vossen, Thomas W.M., 2010. "The one-dimensional cutting stock problem with due dates," European Journal of Operational Research, Elsevier, vol. 201(3), pages 701-711, March.
    5. Erjavec, J. & Gradisar, M. & Trkman, P., 2012. "Assessment of stock size to minimize cutting stock production costs," International Journal of Production Economics, Elsevier, vol. 135(1), pages 170-176.
    6. Cizman, Anton & Cernetic, Janko, 2004. "Improving competitiveness in veneers production by a simple-to-use DSS," European Journal of Operational Research, Elsevier, vol. 156(1), pages 241-260, July.
    7. Krzysztof C. Kiwiel, 2010. "An Inexact Bundle Approach to Cutting-Stock Problems," INFORMS Journal on Computing, INFORMS, vol. 22(1), pages 131-143, February.
    8. Cherri, Adriana Cristina & Arenales, Marcos Nereu & Yanasse, Horacio Hideki & Poldi, Kelly Cristina & Gonçalves Vianna, Andréa Carla, 2014. "The one-dimensional cutting stock problem with usable leftovers – A survey," European Journal of Operational Research, Elsevier, vol. 236(2), pages 395-402.
    9. Kallrath, Julia & Rebennack, Steffen & Kallrath, Josef & Kusche, Rüdiger, 2014. "Solving real-world cutting stock-problems in the paper industry: Mathematical approaches, experience and challenges," European Journal of Operational Research, Elsevier, vol. 238(1), pages 374-389.
    10. Tao Wu & Kerem Akartunal? & Raf Jans & Zhe Liang, 2017. "Progressive Selection Method for the Coupled Lot-Sizing and Cutting-Stock Problem," INFORMS Journal on Computing, INFORMS, vol. 29(3), pages 523-543, August.
    11. Gradisar, Miro & Resinovic, Gortan & Kljajic, Miroljub, 1999. "A hybrid approach for optimization of one-dimensional cutting," European Journal of Operational Research, Elsevier, vol. 119(3), pages 719-728, December.
    12. Beraldi, P. & Bruni, M.E. & Conforti, D., 2009. "The stochastic trim-loss problem," European Journal of Operational Research, Elsevier, vol. 197(1), pages 42-49, August.
    13. Muter, İbrahim & Sezer, Zeynep, 2018. "Algorithms for the one-dimensional two-stage cutting stock problem," European Journal of Operational Research, Elsevier, vol. 271(1), pages 20-32.
    14. Trkman, Peter & Gradisar, Miro, 2007. "One-dimensional cutting stock optimization in consecutive time periods," European Journal of Operational Research, Elsevier, vol. 179(2), pages 291-301, June.
    15. Silva, Eduardo M. & Melega, Gislaine M. & Akartunalı, Kerem & de Araujo, Silvio A., 2023. "Formulations and theoretical analysis of the one-dimensional multi-period cutting stock problem with setup cost," European Journal of Operational Research, Elsevier, vol. 304(2), pages 443-460.
    16. François Clautiaux & Cláudio Alves & José Valério de Carvalho & Jürgen Rietz, 2011. "New Stabilization Procedures for the Cutting Stock Problem," INFORMS Journal on Computing, INFORMS, vol. 23(4), pages 530-545, November.
    17. de Lima, Vinícius L. & Alves, Cláudio & Clautiaux, François & Iori, Manuel & Valério de Carvalho, José M., 2022. "Arc flow formulations based on dynamic programming: Theoretical foundations and applications," European Journal of Operational Research, Elsevier, vol. 296(1), pages 3-21.
    18. Omid Shahvari & Rasaratnam Logendran & Madjid Tavana, 2022. "An efficient model-based branch-and-price algorithm for unrelated-parallel machine batching and scheduling problems," Journal of Scheduling, Springer, vol. 25(5), pages 589-621, October.
    19. Letchford, Adam N. & Amaral, Andre, 2001. "Analysis of upper bounds for the Pallet Loading Problem," European Journal of Operational Research, Elsevier, vol. 132(3), pages 582-593, August.
    20. C Alves & J M Valério de Carvalho, 2008. "New integer programming formulations and an exact algorithm for the ordered cutting stock problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(11), pages 1520-1531, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:179:y:2010:i:1:p:169-186:10.1007/s10479-008-0454-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.