Manufacturing of textile and apparel contributes depletion of water resources, the use of natural resources, the release of water and air pollution and increasing the amount of waste entering landfills. Industrial textile waste represents nearly half of the whole flow of textile waste. Major part of the industrial textile waste is landfilled, because of the lack of technologies and infrastructure for recycling. The practice of mixing all the textile cuttings at the apparel production companies, leads to the challenge for reuse or recycling of the leftovers.. Textile companies are obliged to look for alternative waste management options in order to meet the requirements and challenges of Circular Economy action plan published by the European Commission. This article represents the model created for the analysis of industrial textile waste flows and development of scenarios for reasonable waste management. The model and methodologies involved are oriented to preventive solutions -The evaluation of the efficiency of the model is based on sustainability indicators which represents the effect of the scenarios for environmental, economic and social aspects. The implementation of the model to the case study of Lithuanian apparel production company, have disclosed that improvements at the industrial textile waste management within the company, could lead to the increase of efficient use of resources (three times) and environmental impact (twice).