Consumption & Calculation

The quantity of fabric which is required to produce a garment is called consumption. How much fabric is required to produce a garment, we can determine it through marker planning and mathematical system. We can calculate and determine the consumption of fabric by the following two systems: 1. Marker planning system 2. Mathematical system 1. Marker Planning System In the system mentioned here studying the range of size, following six pcs of six sizes can be sorted out from size range. As in XS, S, M, L, XL, XXL Besides these we can choose three pcs of three size or twelve pcs of twelve sizes for our convenience. It depends on our intelligence and the size range; thereafter paper pattern can be made by grading to the above garments as per measurement sheet. Having made the paper pattern it should have to lay each parts of the paper pattern on a marker paper of similar fabric width. After marking the paper pattern if we measure marker paper to length wise, we will find an aggregate consumption of six pcs of garment. If the aggregate is divided by six, we will find a consumption of one pc garment. As such we will find a consumption of one dozen garments from the above system calculations. 2. Mathematical System Whatever is the fabric consumption of a garment or whatever quantity of fabric is required to produce a garment is measured by mathematical system. Mathematical system is a system of rough estimation. Consumption of a sample garment or consumption as per measurement sheet is calculated mathematically by measuring the area of length and width of each parts of each pcs of garment. Fabric Consumption Calculation of a Basic Shirt Back Part 30.5 (Body Length) X 27.5 (1/2 Chest) / 36X 44 ( Fabric Wirth) 0.529 YDS 26 (Yoke Length) X 7 (Yoke Width) X 2 (Double Part) / 36 X 44 0.229 YDS 32 (Body Length) X 16.5 (1/2 Chest) X 2 (Double Part / 36 X 44 0.666 YDS Front Part 32 (Body Length) X 16.5 (1/2 Chest) X 2 (Double Part) / 36 X 44 0.666 YDS Sleeve 23.5 (Sleeve Length) X 25 (Arm Hole) X 2 (Double Part) 36 X 440.741YDS 12 (Cuff Length) X 3 ( Cuff Width) X 4 ( 2 X2 Parts) / 36 X 44 0.99 YDS Collar 21.5 ( Collar Band Length) X 2 ( Band Width) X 2 ( Double Part) / 0.067 YDS 36 X 44

21.5 ( Collar Band Length ) X 2 ( Band Width) X 2 ( Double) / 36 0.054 YDS X 44 Pocket 8 ( Pocket Length) X 6 ( Pocket Width) / 36 X 44 Total Fabric Consumption Fabric Consumption Calculation of a Knit T-Shirt Back Part 75 cm ( length) x 50 cm ( Chest width) Front Part 75 cm ( Front length) x 50 cm ( Front chest width) Sleeve 24 cm ( Sleeve length) x 40 cm ( Armhole width) x 2 ( 2 sleeves) Total Fabrics Consumption Let us make the 9420 scm into Meters than Kg: 9420 scm divided by 10000 scm ( 100 x 100 = 10000 scm) Let us say 1 square meter fabric weight 140 gm divided by 1000 0.942 m fabric weight ( 0.942 x 0.14) 1 Pc Knit T Shirt Weight Therefore, 12 Pcs Knit T Shirt Weight (0.13188 X 12) Cost Calculation System During the fixation of price following notes are to be followed carefully:

0.03 YDS 2.406 YDS

3750 scm

3750 scm

1920 scm 9420 scm

0.942 m 140 gm 0.14 kg 0.13188 kg 0.13188 Kg 1.59 Kg

Cost of fabric Cost of accessories /Doz. garments. C. M (Cost of manufacturing)/Doz. Garments Cost of transportation from factory to sea port or airport. Clearing & forwarding cost Overhead Cost. Commission/Profit.

Cost Calculation of a Garment item fabric Shell A Shell B Lining insulation Padding 65/35 TC PU Coating 65/35 TC NT 210 T PD width 58 58 60 consumption unit price $ amount $ 3 YDS 0.11 YDS 2.59 YDS 0.75 0.70 0.73 2.25 0.08 1.89

AFD 500 D 150 GM

60

2 YDS

0.80

1.60 0.105 0.046 5.97 0.36 0.02 0.27 0.08 0.204 0.102 0.102 0.14 0.20 0.04 0.02 0.02 0.16 0.15 0.26 2.13 8.10 1.00 9.10 0.05 0.18

N/P 44 0.35 YDS 0.30 KCX-3 38 0.38 YDS 0.12 Sub Total accessories Zipper V # 5 One Way 1.02 PCS 0.35 Plastic Button 1.02 PCS 0.02 (Small) Plastic Button (Big) 13.26 PCS 0.02 Eyelet 8.16 PCS 0.01 Main Label Woven 1.02 PCS 0.20 Size Label Print 1.02 PCS 0.10 Care Label 1.02 PCS 0.10 Thread 60S 0.20 CONE 0.69 Stopper 4.08 PCS 0.05 Stopper Bead 4.08 PCS 0.01 Velcro Pile 25 MM 0.15 YDS 0.10 Velcro Hook 25 MM 0.23 YDS 0.10 Cotton String 6 MM 4 YDS 0.04 Hang Tag 1.02 PCS 0.15 Packing Poly, Blister, Carton etc 1.02 0.25 Sub Total Material Total Cost of Manufacturer Cost of Production Transport Cost from factory to sea port or airport (0.5% Of Cost of Production) Clearing & forwarding Cost (2% Of Cost of Production)

Overhead Cost (0.5% Of Cost of Production) Total Cost Commission (10% of Total Cost) Net FOB Price How to Prepare Price Quotation There are three methods for fixation of export prices which are as follows:

0.05 9.38 0.94 10.32

FOB C&F CIF

FOB FOB means free on board i.e. exporter does not bear the cost of freight of ship or air. In this case, the exporter quotes the price by adding the fabric cost, accessories cost, cost of manufacture, overhead cost, his commission, C&F commission & cost of transportation from factory to port. It is buyer (importer) who himself bears the freight of ship or air. C&F C& F means Cost of Freight i.e. FOB (Cost) +Freight. In the case ship or air freight is carried by the exporter while quoting price, the exporter quotes price a bit higher than FOB. The whole responsibility including the sending of goods to the selected port of the importer is shouldered by the exporter ship or air. Freight may vary from place to place and shippers to shippers. CIF C I F means Cost, insurance & Freight. In this case in addition to the bearing of freight the Cost of insurance is also borne by the exporter. The exporter, while quoting CIF price, quotes much higher than C & F value i.e. C & F + Insurance The following example will clarify how to fix price of a particular commodity: Let us quote a price of one dozen long sleeve shirts: Price Quotation of a Garment in FOB/ C&F/ CIF Value Particulars Fabric (30 Yds X$0.95) Cost /Doz. Accessories Cost./ Dzn CM (Cost of Manufacturing)/Dzn. Amount in US $ 28.50 06.00 10.00

Sub Total Transport Cost from factory to sea port or airport (0.5% Of Cost of Production) Clearing & forwarding Cost (2% Of Cost of Production) Overhead Cost (0.5% Of Cost of Production) Total Cost Commission (10% Of Total Cost ) Net FOB Price Freight (4% of Net FOB Price) Net C & F Price Insurance Cost (1.5% of Net C&F Price) Net C I F Price Global Sea Freight & Air Freight Calculation System

44.50 0.23 0.90 0.23 45.86 4.60 50.46 2.02 52.48 0.79 53.27

Though almost garment orders are placed by buyers on FOB basis, the buyers to pay freight at the shipping destination, it is still necessary for the shipper or the agent to know how to calculate sea freight and air freight the merchandise costs per dz. If exporters are required to sell on CIF basis, (the shipper to pre-pay freight at the shipping port) exporters will need to calculate the freight accurately for their own costing. Sea Freight Sea Freight is generally varied based on volume how much per CBM (Cubic meter) very rarely by weight as density cargo. In fact ANERA (Asia North America Eastbound Rate Agreement) has designed the freight tariff based on the usual value of the type of goods, than the usual weight of them, taking into consideration that for low value merchandise they should give a low freight rate in order to make it possible for the importers to buy goods overseas. However, for high value merchandise, they should charge a high freight rate as it is believed that the buyer can afford to pay more on freight. They have designed the freight tariff in such a way that everybody can do business and there is sufficient profit for the shipping lines. The following is an example to show you the idea: Rattan Furniture: (low value goods) US $ 2975.00 for a 40 container to East Coast (USA) Garments (not silk) (medium value goods) US $ 5295.00 for a 40 container to East coast (USA) Silk Garments (High value goods)

US $ 9355.00 for a 40 container to East Coast (USA) From the above we are seeing that for the same 40 Container the shipping line charges very different rates. Nowadays, it is very common to ship goods by containers and pay the freight for the whole container, even if you sometime do not have the exact volume of merchandise to fill up the whole container. The reason for this is: For Example: The shipping line charges US $160.00 per CBM if exporter ships goods by the CBM as loose cargo. But, if exporter ships goods by the container, they charge the exporter about US $ 3500.00 per 40 container. These are approximate rates for shipment from the South East to U.S.A. ports, but they vary from each of the South East countries and to East or west coasts of the United States. However, the above example can give the general relationship between the rates of loose cargo, 20 and 40 containers. The following will show this point more clearly: 20 Container Measurement: Length: 288 x Width: 84 x Height: 94 = 1800288 cubic inches 1800288 divided by 1728 cubic inches= 1041.83 cubic feet. 1041.83 divided by 35.32 =29.50 CBM A 20 container has an air capacity of 29.50 CBM, but when exporters ship goods packed in cartons or wooden crates, it can only hold about 27 CBM as there will be gaps or spaces wasted . If the rate of a 20 container is $ 3, 500.00 exporters average rate per CBM is about $ 130.00 40 container Measurement: Length: 447 x Width: 84 x Height: 94 =3742704 cubic inches. 3742704 divided by 1728 cubic inches= 2165.92 cubic feet. 2165. 92 divided by 35.32 = 61.32 CBM. Therefore, a 40 container has an air capacity of 61.32 CBM. Likewise, when the exporter ship goods by packed cartons or wooden crates, it will hold only about 54 CBM. If the rate of the 40 container is $5000.00 the average rate per CBM is about $ 92.00.

40 Hi container Measurement Length: 447 x Width: 84 x Height: 106 = 474 x 84 x 106= 4220496 cubic inches. 4220496 divided 1728 cubic inches =2442.41 cubic feet. 2442.41 divided by 35.32 = 69.15 CBM A 40 Hi Cube container is about 12% higher than a 40 regular container, and the cost of a 40 Hi Cube is about 10 to 12% higher, so the rate per CBM is about the same. There is very little, or on advantage in using a 40 Hi Cube as the rate per CBM is concerned. However, there is great advantage when the exporters have the amount of cargo which exceeds the capacity of a 40 container only by 5 to 8 CBM. If the exporter ships goods as loose cargo, the rate is about $160.OO/CBM, from the above we are seeing that it is most convenient to use 40 containers if at all possible. However, it is not always possible for the buyers to buy goods with the Quantity adjusted to fill the containers. But if the Quantity ordered is so big that it takes a few 40 containers to ship at different time, then the shipper should plan the shipments carefully so that the right amount of goods is shipped each time to fill a 40 container, because the saving in using 40 container is so big that it is worth exporters time and effort to work to achieve it for their buyers. Example: one dz of Mens stand up collar shirt is about 0.034 CBM. (1) If exporter ships this shirt as loose cargo, 0.034 x 160.00 =$5.44/ dz sea freight (2) If exporter ships this shirt in a 20 container (full) 0.034 x 130.00 =$4.42/ dz sea freight. (3) If exporter ships this shirt in a 40 container, or a 40 f ii Cubic container (full) 0.034 x 92.00=3.13 per dz sea freight As most shippers are shipping goods by the container, we may form an opinion that as long as we pay for the whole container we may fill up the container regardless of the weight of the merchandise. However, this is hot true; the usual weight limits of the containers are as follows: 20 container..weigh limit: 16300 kg 40 container. weigh limit: 19500 kg

Actually the weights mentioned above are weight limits as guidelines. The real limits are as follow: 20 container:.18148 kg including the weight of the container. 40 or45 container:.25400 kg including the weight of the container. The following are the weights (tare weights) of the containers: 20 Steel : 1960 to 2350 kg 40 Steel :. 3390 to 4190 kg 40 Aluminum : .2450 to 3050 kg 45 Aluminum / Steel : ..3925 to 4500 kg Goods like ingot and dry cell batteries can easily exceed the limits. When exporters ship this type of goods, they may fill the container half and reach the weight limit. The weight limits are set not so much for the capacity of the ship, it is for the loading and unloading equipment, and the road safety regulations (bridges also) when the container gets ashore. if you ship very heavy goods as loose cargo because the size of the shipment is very small, the shipping lines will charge you by weight or by volume whichever is higher: .1 CBM (100cm x 100cm x 100cm) =1000 kg. AIR FREIGHT Unlike sea freight, the airlines have decided to charge for the heavy merchandise (high density goods) by weight and light weight merchandise (low density goods) by volume. However, as airplanes can take less weight, than ocean liners, the way they set the standard, in the garment industry, when you ship goods by air, you have a 70% chance to be charged by weight, about 30% chance by volume. If the merchandise is of high density (heavy) such as jeans, flat packed shirt, jackets without polyester padding, T-shit without hanger, there is a good chance it will be charged by weight. In that case, it is not possible to save air freight by packing the goods tighter in cartons to reduce the measurements. However, if the merchandise is of low density (light weight) such as stands up collar shirts, shirts individually boxed , jackets with polyester padding, or down fill, T-shirts or other shirts with hangers heavy gauge sweaters , there is a good chance it will be charged by volume. In that case, exporter should make an effort to make the cartons as small as possible.