Fibre-to-Garment Cost Cascade with Compounding Stage Losses

Conversion costs here are charged on the mass ENTERING each stage, not the mass leaving it, which is the point of the tool: a factory pays to blow, card, knit and dye material that it later drops as noil, hard waste or an off-shade roll. Quotations that charge conversion on good output instead will read lower, and will keep reading lower right up until the year-end stock count. The cumulative yield is a product, not an average — the single most common costing error in the industry is to take four yields in the high eighties and reason as though the chain runs at about eighty-eight percent, when it runs at sixty-five. The sensitivity figure answers the merchandiser question directly: because fibre is only part of the cost, a ten percent fibre move does not move the quotation by ten percent, and knowing which fraction it does move is the difference between holding a price and losing a margin. Cut-and-make is per garment because that is how it is quoted and how it behaves; everything upstream is per kilogram because that is how it is bought.