The management asked us to develop methods to determine the stockmix and the break quantities. The methods need to be used on a regular basis because of market dynamics the optimal stockmixes and cutoff order sizes may change quite frequently. In this study we focus on cost minimisation under certain service requirements. The costs considered include the transportation costs and the extra handing and packaging costs for orders shipped via a DC. Inventory costs are ignored because their impact is judged to be low due to the high inventory turnover and the limited number of product in the stockmix. The two service requirements considered are speed of delivery and reliability. As delivery through a DC is substantially faster (Normally two three days between order receipt and delivery to the customer) than through a PP (about two weeks), the first requirment in modelled as a minimal percentage of order shipped via a DC. Service reliability is measured as the maximal percentage of order shipped too late as a result of insufficient cutting capacity. Order sizes are measured in this investigation in m2 (width time length) due to the customers needs as well as in Kilograms due to the transport tariff structures. For transportation purposes the products are equivalent. There is a fixed conversion factor between volume and weight.