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We study a paper converting process where master rolls are transformed to paper sheets with the minimal paper loss, including trim loss, set up loss, and over-production loss. Two different types of cutters are involved in the converting process - one transversal knife and two transversal knife machines. To solve the problem, various types of paper sheets specified by material type, size, and required quantity are grouped into all possible cutting patterns using a heuristic method. Then, a MILP model is proposed to assign cutting patterns to each type of cutter while satisfying the machine capacity constraints. Applying the methodology to industrial problems, we found the average total loss of 4.6% for single-product group problems and 3.1% for two-product group problems, which respectively correspond to 25.8% and 41.9% improvement over a current method based on worker experiences used by the company. [ABSTRACT FROM AUTHOR]