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One of the known problems in the field of operation research, especially production planning, is cutting problem. In industrial field, two-dimension cutting problem is more compatible with real problem. Principal objective is to reduce losses resulted from cutting. In this paper, according to this objective, we develop solution space through an "and-or" graph. Then, we provide an improved branch-and-bound method in order to reducing solution space according to a stochastic optimization algorithm. Obtained results show the algorithm suitable capability in comparison with current algorithms.