Two-dimensional cutting stock problem is to find a waste-minimizing method of cutting a single rectangular plane into a number of smaller pieces of known dimensions. In practice, besides wastes, setup cost taken during adjusting is of an important concern. We suggest 2-phased guillotine cutting method as a solution to the problem which minimize wastes and setup costs. Also, in order to reduce the computing time we apply techniques of discretization, cutoff, median. Experimental results show good performance of our algorithm.