How to Calculate Poly Bag Costing in Garment Industry?

How to Calculate Poly Bag Costing in Apparel Industry?

Polybag costing is an important matter in garments merchandising. All the garment merchandisers should know about it. Polybag costing is not a tough task that we have normally seemed. As its importance in the readymade garments sector, today I will present here the costing calculation method of the 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. Polybag length in inch,
2. Polybag width in inch,
3. Poly bag thickness in gauge,
4. ½ flap of the poly bag (Flap is single layer and width of the poly bag is double layer),
5. Numbers of print on the polybag (Print can be any types of logo, text, warning, etc.),
6. Rate of polymer per pound (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 bags.
• 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 bags costing. Hope all the confusion 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 the poly bag- 5”,
Rate of LDPE polymer- $0.40 per pound.

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

Solution:

At first, we have to calculate poly consumption according to the 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, the 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 the garments industry?
2. How to estimate poly bags costing in the apparel industry?
3. How to estimate poly bag costings in the clothing industry?
4. Mention the poly bags costing calculation method.
5. Describe the poly bags costing for garments merchandiser.