Efficient lumber utilization at the saw has become a key issue in the woodworking industry. This is because of shrinking supply and increasing raw materials prices. In this paper, formulation of the cross-cut first method of cutting defects out of lumber as a one-dimensional stock cutting problem is discussed. A Monte-Carlo simulation method has been used for generating boards of a given grade. This simulation greatly aids in comparing alternate solution procedures proposed in the paper. To facilitate real time-application, a fast heuristic for the digital computer is introduced. This is followed by a discussion of cutting length priority allocation. The heuristic solution is compared with the optimal solution obtained using Kolesar’s knapsack algorithm.