Cutting stock optimization and integral production planning for centralized wood processing

This article is about integral production management for a real world cutting stock system, a centralized conversion site (CCS). The CCS imports tree trunks and processes (cuts) them to assortments and boards for the various markets. Stochastic raw material parameters, coupled production, and value recovery versus directedness towards the market are a few of the aspects that were tackled in this research. Both local (cutting pattern directed) and integral (system directed) optimization was performed during this research. A prototype for a decision support system (DSS) called IDEAS (integral decision effect analysis system) was built. In this article, various aspects of the research such as the concept of integral (multiproduct, multiperiod) optimality and the required mathematics are discussed.