Calculate the Yarn Consumption and Costing / Pricing Techniques for the Fully Fashioned Knitwear

Calculate the Yarn Consumption and Costing / Pricing Techniques for the Fully Fashioned Knitwear

Muhammad Rahat 
Dept. of Knitwear Manufacturing Technology 
BGMEA University of Fashion & Technology (BUFT) 
Email: smrahatsaif@gmail.com

What is consumption? 

• How many yarn are required to produce one dzn sweater. 

Fully fashioned knitwear

What are the basic requirements?

• Knowledge about gauges—4G, 5G, 7G etc.
• Knowledge about material/yarn—100% acrylic
• Weight of the garments—15lbs/dzn

Wastage Mainly 6%:

What are the objectives of costing?

• Determining the competitive and correct pricing.

What are the basic requirements?

• Understanding styling and designing.
• Knowledge about different gauge.
• Mode of business term (FOB, CFR, CIF, etc).
• Mode of Payments (L/C type and payments term).
• Nature of business (Factory or buying house).

Condition 

• Considering a compliance Factory (FOB).
• Not any (CM/CMT) base factory.

Season based one gauge. 

Types and gauge 

• Peak Season 
• Off peak season

Standard CM ranges (Complianced factory) CM based on gauge and season. 

Types of Gauge: Off peak
3G ....................................$20/dzn ..........................$22/dzn 
5G ....................................$21/dzn .........................$23/dzn 
7G ....................................$22/dzn ......................... $24/dzn 
10/12G .............................$24/dzn ..........................$26/dzn 

Additional Charges: 
Styling and designing charges

1. For raglan and saddle = $0.5/dzn
2. Drop and set-in = $0.25/dzn
3. For straight shoulder = No additional charges because no increase and decrease.

Designing Charges

1. Cables (Normal)------$0.25/line/dzn
2. Cables (Fancy)--------$0.50/line/dzn
3. Cables (Butterfly)----$1.50/line/dzn

Diamond

1. Normal Diamond-------- $1.00/line/dzn
2. Fancy Diamond---------- $1.50line/dzn

Example:

*Calculate the costing/pricing of a men’s sweater with crew neck, raglan shoulder, long sleeve, allover 6 line normal cables, and 4 lines normal diamond in 5G 100% acrylic yarn. 

Shipment: 10th September. 
Weight: 15 lbs/dzn 
FOB Factory merchandising say yarn price $1.50/lbs. 

Solution: 

15+6% =15.90 lbs/dzn $1.50 = $23.85 
CM………………………… = $21.00 
Styling……………………… = $0.50 
Designing……………….….. = $5.50 
Trims/Accessories……….…. = $4.00 
Commercial+Logisti+Mise .....= $4.00 
…………………………………………………….. 
FOB factory ...........................= $58.85/dzn