How to Calculate Carton Costing in Garment Industry?

By | November 13, 2015

How to Calculate Carton Costing in Apparel Industry?

Mayedul Islam
Merchandiser at Fashion Xpress Buying House.
Badda, Dhaka, Bangladesh.
Email: [email protected]

 

Introduction:

Carton costing is very much important in garments merchandising. Carton costing is not a tough task that we have normally seemed. This article has shown an easy method for calculating carton costing in apparel industry.

Carton Costing Calculation Method in Garments Industry:

Before calculating carton costing, a garments merchandiser should confirm the following information:

  1. Carton length in cm,
  2. Carton width in cm,
  3. Carton height in cm.

Important tips**
Then, garment merchandiser should calculate ply board consumption for the carton box and multiply with ply board rate.

Now by using the below formula, a garment merchandiser can easily calculate carton box costing in readymade garments industry.

Carton costing (Per pc carton box),
= Ply board consumption (Per pc carton in square meter) × ply board rate (per sq. meter)………… (1)

Now, one example is enough to remove your all the confusions from the above discussion.

Example:

Suppose, a 5 ply carton having length 65cm, width 45cm and height 12cm. Now calculate Carton box costing for 400pcs carton box. (where, 5 ply board rate is $0.65 per square meter).

Solution:

Here,

Carton length – 65cm,
Width of carton- 45cm,
Carton height – 12cm,
5 ply board rate per square meter- $0.65

Total carton-400pcs.

So,

Ply board consumption (Per pc carton in square meter),

= 1.41 square meter per pc carton.

Now, from (1), we get-

Carton costing (Per pc carton box),
= Ply board consumption (Per pc carton in square meter) × ply board rate (per sq. meter)
= 1.41 × 0.65
=$0.92 per pc carton box.

So,

For 1pc carton, carton box costing stands at =$0.92.

And,

For 400pcs carton, carton box costing will be (0.92 × 400) = $368.

Speech from the writer:
If you read this article with full attention, then you can easily answer the following questions in the interview:

  1. How to calculate carton costing in garments industry?
  2. How to estimate carton costing in garments industry?
  3. Mention the carton costing calculation method.
  4. Mention the carton consumption and costing method in apparel industry.
  5. Mention the carton consumption and costing for garments merchandiser.

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