How to Calculate Poly Bag Costing in Garment Industry?

By | November 4, 2015

How to Calculate Poly Bag Costing in Apparel Industry?

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

 

Introduction:

Poly bag costing is an important matter in garments merchandising. All the garment merchandisers should know about it. Poly bag costing is not a tough task that we have normally seemed. As its importance in readymade garments sector, today I will present here the costing calculation method of poly bag.

Poly Bag Costing Calculation Method in Garments Industry:

At the starting of poly bag costing, a garments merchandiser should identify the below information:

  1. Poly bag length in inch,
  2. Poly bag width in inch,
  3. Poly bag thickness in gauge,
  4. ½ flap of poly bag (Flap is single layer and width of poly bag is double layer),
  5. Numbers of print on the poly bag (Print can be any types of logo, text, warning etc.),
  6. Rate of polymer per pounds (It can be PP, PE and LDPE etc.).

Important Tips**

  • The next duty is to calculate poly bag consumption or calculate the amount of polymer needed to produce poly bag.
  • Then, by multiplying, poly bag consumption (total amount of polymer needed to produce poly bag) with polymer rate, a garment merchandiser can easily calculate poly bag costing in the apparel industry.

Now, I will present an example here for poly bag costing. Hope all the confusions will be cleared.

Example:

Suppose, the buyer “ZARA” suggests the below information about the poly bag of a garment export order.

Poly bag length – 28”,
Poly bag width- 24”,
Poly bag thickness – 160gauge,
½ flap of poly bag- 5”,
Rate of LDPE polymer- $0.40 per pound.

Now, calculate the poly bag costing for the above order.

Solution:

At first, we have to calculate poly consumption according to given data.

Poly bag consumption (for 1000pcs in kg),

= 38.4 kg per 1000pcs ply bag.

So, for 1000pcs poly bag, LDPE polymer needed 38.4kg.

And,

For 1pc poly bag, LDPE polymer needed,
= (38.4/1000) kg= 0.04kg= (0.04 × 2.20) lbs= 0.08lbs

So, cost of LDPE polymer for 1pc poly bag ($),
= LDPE polymer needed for 1pc poly bag × LDPE polymer cost per pound (lb)
= 0.08 × 0.40
= 0.03

So, cost of LDPE polymer or cost for 1pc poly bag is $0.03

And,

Cost of 1000pcs poly bag,
= $(1000 × 0.03) = $30

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

  1. How to calculate poly bag costings in garments industry?
  2. How to estimate poly bags costing in apparel industry?
  3. How to estimate poly bag costings in garments industry?
  4. Mention the poly bag costing calculation method.
  5. Describe the poly bag costing for garments merchandiser.

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3 thoughts on “How to Calculate Poly Bag Costing in Garment Industry?

  1. Rashidul Hassan

    This is very important article about poly bag costing. It will be effective for beginners. Thanks for sharing.

    Reply
  2. monir

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    Reply

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