Factors Affecting Raw Material Write Off

Download or read book Factors Affecting Raw Material Write Off written by M.G.S. Dilanthi and published by . This book was released on 2015 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Sri Lankan apparel industry is considered as the most significant and dynamic contributor to the country's economy. This research is carried out as a case study in the Sri Lankan apparel industry to identify factors affecting raw material write off. One of the leading apparel manufacturers in Sri Lanka was selected for this study and a quantitative approach was used. The main raw material considered throughout this research is fabric, since it is considered as the single largest cost factor of a garment. Selection of fabric as the main raw material is justified in this study by providing evidence on raw material write off of the selected apparel manufacturer. This research randomly selected 85 schedules as the sample. Further, both primary and secondary data were used, and data were collected through author observations, interviews and secondary data sources. According to the descriptive analysis, yield per yardage saving is a major contributor to the raw material write off. Further descriptive analysis shows that pattern changes and marker improvement are mainly contributing to these yield per yardage saving. The regression analysis revealed that both excess ordered raw material quantity and yield per yardage saving are the significant factors that affect on raw material write off in the Sri Lankan apparel industry. Creating a Lean manufacturing culture is the main suggested solution to minimize raw material write off.