APPLICATION OF LINEAR-PROGRAMMING IN A GAUZE SPLITTING OPERATION

''Real-world'' adaptation of a linear programming model for cutting stock problems has led to significant financial and operational improvements at Kendall Corporation. Originally developed for controlling waste when slitting rolls of cloth, the project also reduced work-in-process inventory, which helped the firm reach just-in-time production goals. Another dramatic, but largely unplanned, benefit from the project was the company's ability to investigate operations redesign. Direct and indirect benefits derived from making scheduling decisions more visible, systematic, and tractable have been estimated by Kendall to be more than $2 million per year.