Order Quantity *1 Roll of fabric = 90 Metre

Margin = 2% **1 Roll of thread = 300 Metre

Production
Wastage Fabric 2 order qty 5000
Trims 3 Total Rolls
Accessories 2 1Thread cone 300 Mtr
Packaging materials 1

Production Cost (Material)

Consumption Per Total consumption

Seq. No. List of Material Shirt/ Mtr / Price of Unit / Price of Required Wastage of Raw material Total Price (Including Unit price Unit price
Mtr Material/ material /shirt pcs/5000 pcs in % wastage) /category
pc/cone including wastage

Raw Material Fabric / Mtr/ shirt 2 150.00 300.00 10000 2 10200.00 1530000.00 306.00 306.00

Thread /cone/ Shirt 1 5.00 5.00 5000 3 5100.00 25500.00 5.10

Buttons 0 3 0.00 0.00 0.00
18 10 0.52 5.21 50000 3 51000.00 26562.50 5.31
14 5 0.49 2.43 25000 3 25500.00 12395.83 2.48
Fusing 0.30 200.00 60.00 1500 3 1530.00 306000.00 61.20
Trims 75.06
Collar bone 1 0.35 0.35 5000 3 5100.00 1785.00 0.36
Collar Support 1 0.15 0.15 5000 3 5100.00 765.00 0.15
Labels 0 3 0.00 0.00 0.00
Size 1 0.25 0.25 5000 3 5100.00 1275.00 0.26
Wash care 1 0.20 0.20 5000 3 5100.00 1020.00 0.20
0 2 0.00 0.00 0.00
Cuffling 4 0.00 20000 2 20400.00 0.00 0.00
Accessories 6.12
Logo (made of
thread+ making) 2 3.00 6.00 10000 2 10200.00 30600.00 6.12
Price Tag 1 1.50 1.50 5000 1 5100.00 7650.00 1.53
Hand Tag 1 1.25 1.25 5000 1 5100.00 6375.00 1.28
Brand Tag 1 1.50 1.50 5000 1 5100.00 7650.00 1.53
Butterfly (Collar
bows) 1 0.25 0.25 5000 1 5100.00 1275.00 0.26
Garment Clips 2 0.20 0.40 10000 1 10200.00 2040.00 0.41
Cardboard 1 1.50 1.50 5000 1 5100.00 7650.00 1.53
Pins 2 20.00 40.00 10000 1 10200.00 204000.00 40.80
Packaging Butterpaper 1 0.30 0.30 5000 1 5100.00 1530.00 0.31 51.99
Transparent Polybag 1
1.50 1.50 5000 1 5100.00 7650.00 1.53
Major Polybag (18
Shirts in 1 Polybag) 1.00 12.00 0.67 277.7777777778 1 283.33 3400.00 0.68

Carton (1 Major
Polybag in 1 carton) 1.00 60.00 1.67 175 1 178.50 10710.00 2.14
TOTAL ₹ 2,195,833.3 439.17
 5100

10200
 CASE STUDY

XYZ Co. from Paris wants to source T-shirts from India for their
Summer season. The Cargo time from Chennai to Paris set
maximum 30 days. Find out tentative lead time of New Order.
When is the right time to aproach to manufacture?
Duration
List of Activities Duration
Date From Date To
Idea 01/08/2018 8/31/2018 30 DAYS
Market Survey 01/09/2018 9/30/2018 30 DAYS
Design 01/10/2018 10/31/2018 30 DAYS
Product Price 01/11/2018 11/15/2018 15 DAYS
Target Range & Quantity 16/11/2018 11/26/2018 10 DAYS
Approach to Supplier NO TIME
Negotiation 11/27/2018 12/11/2018 15 DAYS
Sample Development 12/12/2018 12/16/2018 5 DAYS
Sample Inspection 12/17/2018 1/6/2019 20 DAYS
Order Confirmation NO TIME
Sourcing of Raw Material 1/7/2019 2/6/2019 30 DAYS
Manufacture Process 2/7/2019 3/24/2019 45 DAYS
Final Inspection 3/25/2019 3/27/2019 3 DAYS
Warehouse 3/28/2019 3/31/2019 4 DAYS
Port of Export 4/1/2019
30 DAYS
Port of Import 4/30/2019
Central Warehouse 5/1/2019 5/5/2019 5 DAYS
Distribution 5/6/2019 5/12/2019 7 DAYS
Retail Assortment 5/13/2019 5/15/2019 3 DAYS
Retail 5/16/2019
Customer
282
TOTAL TIME 282 DAYS
LEAD TIME 167 DAYS
 COMPONENTS OF A SHIRT
Parts Required No.
Front Lef 1
Right 1
Pocket Lef 1
Back Back 1
Back Yoke 2
Placket Upper Placket 1
Inner Placket 1
Collar Stand 1
Fall Collar 1
Sleeves 2
Cuf Lef 2
Right 2
Cuf Placket Diamond Placket 2
Inner Placket 2
Buttons 12
TOTAL 32
 Duration Date
List of Activities

Idea 4/30/2018
Market Survey 6/30/2018
Design 45 Days
Product Price 15 Days
Target Range & Quantity 10 Days
Approach to Supplier No Time
Negotiation 15 Days
Sample Development 5 Days
Sample Inspection 20 Days
Order Confirmation
Sourcing of Raw Material
Manufacture Process
Final Inspection
Warehouse
Port of Export
Port of Import
Central Warehouse
Distribution
Retail Assortment
Retail Assortment
Customer
 Order Quantity *1 Roll of fabric = 90 Metre
Margin = 2% **1 Roll of thread = 300 Metre
Production
Wastage Fabric 2 order qty 5000
Trims 3 Total Rolls
Accessories 2 1Thread 300 Mtr
Packaging materials 1

Production Cost (Material)

Consump Price of
tion Per Price of Required Wastage
Unit / material
SN Raw Material List of Material Shirt/ / pcs/5000
Mtr in %
Mtr / Material/ shirt pcs
pc/cone

1 Fabric Fabric / Mtr/ shirt 2 150.00 300.00 10000 2

2
3 Thread /cone/ Shirt 1 5.00 5.00 5000 3
4 Buttons 0 3
5 18 10 0.52 5.21 50000 3
6 14 5 0.49 2.43 25000 3
7 Fusing 0.30 200.00 60.00 1500 3
Trims
8 Collar bone 1 0.35 0.35 5000 3
9 Collar Support 1 0.15 0.15 5000 3
10 Labels 0 3
11 Size 1 0.25 0.25 5000 3
12 Wash care 1 0.20 0.20 5000 3
13 0 2
14 Cuffling 4 0.00 20000 2
Accessories
Logo (made of
15 thread+ making) 2 3.00 6.00 10000 2
16 Price Tag 1 1.50 1.50 5000 1
17 Hand Tag 1 1.25 1.25 5000 1
18 Brand Tag 1 1.50 1.50 5000 1
Butterfly (Collar bows)
19
1 0.25 0.25 5000 1
20 Garment Clips 2 0.20 0.40 10000 1
21 Cardboard 1 1.50 1.50 5000 1
22 Packaging Pins 2 20.00 40.00 10000 1
23 Butterpaper 1 0.30 0.30 5000 1
Transparent Polybag 1
24
1.50 1.50 5000 1
Master Polybag (18
25 Shirts in 1 Polybag) 0.06 12.00 0.67 277.7778 1

26 Carton (36 pcs/

carton) 0.03 60.00 1.67 175 1
TOTAL
Material Cost exchange r 73

Production

ACTIVITIES SAM perUNIT UNIT COST/5000EXTRA %

PRICE/UNIT
Fabric checking 0.5 5000 0.15 750 2
spreading, ticketin 1 5000 3.5 17500 2
sewing 25 5000 75 375000 2
washing 2 5000 6 30000 2
ironing 2.5 5000 7 35000 1
Packaging 2 5000 5 25000 1
CMT= 80.223

F.O.B
ACTIVITIES
Local
transportation
Ex-factory cost
Loading
shipping
Profit

C.I.F
ACTIVITIES
Local
transportation
Insurance
Ex-factory cost
Shipping cost
Loading cost
Profit
 Total
consump
tion of Total Price
Unit price Unit price Unit
Raw (Including /category cost /USD
material wastage)
including
wastage

10200.00 1530000.00 306.00 306.00 4.191781

0.00
5150.00 25750.00 5.15 1.038309
0.00 0.00 0.00
51500.00 26822.92 5.36
25750.00 12517.36 2.50
1545.00 309000.00 61.80
75.80
5150.00 1802.50 0.36
5150.00 772.50 0.15
0.00 0.00 0.00
5150.00 1287.50 0.26
5150.00 1030.00 0.21
0.00 0.00 0.00 0.083836
20400.00 0.00 0.00
6.12

10200.00 30600.00 6.12

5050.00 7575.00 1.52 0.699388
5050.00 6312.50 1.26
5050.00 7575.00 1.52

5050.00 1262.50 0.25

10100.00 2020.00 0.40
5050.00 7575.00 1.52
10100.00 202000.00 40.40 51.06
5050.00 1515.00 0.30

5050.00 7575.00 1.52

280.56 3366.67 0.67

176.75 10605.00 1.70

₹ 2,196,964.4 438.97
USD $30,095.40 $6.01 6.013314

total Price
including unit Price 73
extra
765 0.153
17850 3.57
382500 76.5
30600 6.12
35350 7.07
25250 5.05
cmtpw 492315 98.463 1.348808

TOTAL PRICE

100000

TOTAL PRICE
 COST unit 5000 USD 73

2194859 30066.57
RAW MATERIAL 438.97
PRODUCTION 98.463
492315 6744.041
Raw Materials Producttion 537.43 0 0
Ex-factory @10% extra 108.3093 0 0
Overhead 9.8463 49231.5 674.4041
Operational cost 53.74349 268717.4 3681.061
Miscellaneous 54728.12 749.7003
local transportation 10000 136.9863
loading 5000 68.49315
0

FOB
Profit @ 20% 601024.7 8233.215

0
TOTAL F.O.B 735.1752 3675876 50354.47

C.I.F Shipping 200000

insurance 134358.7
Documentation charge 14600

TOTAL 804.967 4024835

USD
Landing cost unloading charges 1.2
import duty charges
WAREHOUSING 1.5/ carton box
local transportation 2/carton box average
retail cost
Remarks

Fabric+ Trims+pacaging Materials

CMPTW

CMPTW
10% Production cost
10% Raw Material + production
2% of total cost(raw material+production+overhead)

Raw
Materials+production+overhead+
operational

Container 40 cubic feet

5% of raw materials + production
$200 USD

F.O.B +C.I.F

$200 or 1.2/caton box

18% that’s vary from country to country
Port to warehouse
warehouse to retailer
2.5 multiplied by landing charges or 3% of f.o.b