This paper describes models that estimate the cost and time of sheet metal punching when nesting (batching) orders. These models help decision-makers plan production and evaluate the impact of changing the nesting policy. In addition, we use them to formulate a nesting optimization problem. Finally, we use the models to evaluate the sensitivity of the nesting policy to manufacturing parameters. We conclude that dynamic nesting can reduce the capacity requirements, material requirements, and cost of sheet metal punching.