Case
Teaching Notes
Supplementary Resources
Abstract
Ahmed Garments, an apparel manufacturing and exporting organization in Pakistan, serves a variety of buyers. Changes to regulations and quotas have created more export opportunities in the apparel industry, but recent tragedies and scandals among manufacturers in developing nations have led to buyers demanding safe working conditions along with low-cost products and agile processes. Under these diverse demands, Ahmed Garments must find a way to supply clients ordering fast-fashion and basic garments.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2025 Sage Publications, Inc. All Rights Reserved
Resources
Figure 1. Cost of Air Shipment and Related Loss
Cost of air shipment
- 30,000 pcs equals 2,500 dozen.
- 1 dozen weight with packaging is 2.5 kg.
- 2,500 dozen multiplied by approximate consumption of 2.5 kg equals 6,250 kg in total.
- 6,250 kg multiplied by shipment rate of Rs 350 per kg equals Rs 2,187,500 (equals approximately USD 13,933).
Associated loss if garments are late and shipped by air
- On average an order realizes maximum 20%–15% in profit.
- If USD 2 shirt is manufactured, company will earn 40 cents.
- 40 cents multiplied by 30,000 pcs equals USD 12,000.
- Air freight USD 13,933 minus USD 12,000 equals USD 1,933. So USD 1,933 loss will be sustained by Ahmed Garment in fulfilling that order.
Figure 2. Common Apparel Supply Chain
A double-headed arrow on top has a label “Information & Specifications.” All text in the flow diagram is given within rectangular boxes.
Flow diagram begins with a label “Textile Supplier.” Five labels beneath this label are listed below:
- Wet Processing
- Weaving
- Knitting
- Yarning/Spinning
- Fiber Production
An upward arrow beside the labels connects “Fiber Production” to “Wet Processing.” A rightward arrow from “Wet Processing” connects to a label “Fabric.”
A rightward arrow from the label “Textile Supplier” connects to a label “Apparel Manufacturer & Exporter.” Five labels beneath this label are listed below:
- Finishing & Packing
- Labeling
- Stitching
- Cutting
- Pattern making
An upward arrow beside the labels connects “Pattern making” to “Finishing & Packing.” A rightward arrow from “Finishing & Packing” connects to a label “Garment.”
A rightward arrow from the label “Apparel Manufacturer & Exporter” connects to a label “Intermediary/Buyer.” Two upward arrows from labels “Discount Stores” and “Fashion/Brands” connect to the label “Intermediary/Buyer.” A rightward arrow from the label “Intermediary/Buyer” connects to a label “Consumer.” A word collage of famous apparel brands is given in a rectangular box on bottom right corner of the diagram.

Table 1. Allocated Limit of Quota by U.S. Government
Ranking | Region | Adjusted base quota1 (SME2) |
1 | China | 28.4 |
2 | Taiwan | 26.3 |
3 | Hong Kong | 22.8 |
4 | South Korea | 21.3 |
5 | Turkey | 13 |
6 | Pakistan | 12.4 |
7 | Malaysia | 11 |
8 | Thailand | 11 |
9 | Indonesia | 10.3 |
10 | Philippines | 9.6 |
11 | India | 8.4 |
1. The U.S. database accounts the base quota, the adjusted base quota, and the combined exports for each particular quota by country and year. The base quota is the initially negotiated quota level approved at the start of an agreement period, whereas adjusted base quotas reflect the use of what are known as flexibilities. These flexibilities permitted countries to surpass their base quota in a given period by borrowing unused base quota, up to a particular percentage.
2. Quantities are in billions of square meters. Data for specific limits only. Percentage filled is exports divided by base quota. Countries sorted by aggregate base quota under the MFA/ATC. Source: Authors’ calculations from U.S. MFA/ATC Database.
Source: Brambilla, I., Khandelwal, A. K., & Schott, P. K. (2007). China’s experience under the Multifiber Arrangement (MFA) and the Agreement on Textiles and Clothing (ATC). https:
Table 2. Value, Share and Annual Percentage Change 2000–2018 of Leading Exporters of Clothing
Exporters | Value (USD billion) | Share in world exports/imports | Annual percentage change | ||||||
2018 | 2000 | 2005 | 2010 | 2018 | 2010–18 | 2016 | 2017 | 2018 | |
China (1) | 158 | 18.2 | 26.6 | 36.6 | 31.3 | 2 | −9 | −1 | 0 |
European Union (28) | 143 | 28.7 | 31.0 | 28.4 | 28.4 | 5 | 4 | 10 | 11 |
Extra-EU (28) Exports | 34 | 6.4 | 6.7 | 6.2 | 6.8 | 6 | 0 | 12 | 12 |
Bangladesh (2) | 32 | 2.6 | 2.5 | 4.2 | 6.4 | 10 | 8 | 2 | 11 |
Vietnam (2) | 32 | 0.9 | 1.7 | 2.9 | 6.2 | 15 | 5 | 21 | 13 |
India | 17 | 3.0 | 3.1 | 3.2 | 3.3 | 5 | −1 | 2 | −11 |
Turkey | 16 | 3.3 | 4.2 | 3.6 | 3.1 | 3 | 0 | 0 | 4 |
Hong Kong, China | 14 | −7 | −15 | −8 | −4 | ||||
Domestic exports | 0 | 5.0 | 2.6 | 0.1 | 0.0 | −26 | −35 | −40 | −10 |
Re-exports | 14 | … | … | … | −6 | −15 | −7 | −4 | |
Indonesia | 9 | 2.4 | 1.8 | 1.9 | 1.8 | 3 | −2 | 10 | 9 |
Cambodia (2) | 8 | 0.5 | 0.8 | 0.9 | 1.6 | 13 | 12 | 8 | 14 |
United States | 6 | 4.4 | 1.8 | 1.3 | 1.2 | 3 | −7 | 0 | 5 |
Source: WTO. 2019
Table 3. Average Order Size
Buyer | Type of garment | Total order size (units) | Lead time (weeks) | Profit per unit to manufacturer (USD) |
Swift Fashion | Fast fashion | 25,000 | 5 | 0.9 |
NY Garments | Fast fashion | 30,000 | 4 | 0.8 |
Thrifty Retailers | Low-cost basic | 50,000 | 12 | 0.4 |
Table 4. Operations Involved in Producing a T-shirt
S. No | Type of operation | Type of machine | Machine quantity (pieces) |
1 | Join the shoulder | Over lock m/c | 1 |
2 | Over lock the lining | Over lock m/c | 1 |
3 | Join the neck rib piping edge by plain m/c | Plain m/c | 1 |
4 | Neck joint | Over lock m/c | 1 |
5 | Over locking the neck | Over lock m/c | 1 |
6 | Neck tape join and attach the size label | Plain m/c | 1 |
7 | Neck rib top stitch and attach the main label | Plain m/c | 1 |
8 | Sleeve hem | Flat lock m/c | 1 |
9 | Sleeve joint with the body part | Over lock m/c | 2 |
10 | Side seam | Over lock m/c | 3 |
11 | Sleeve tuck | Plain m/c | 1 |
12 | Neck top stitch | Flat lock m/c | 1 |
13 | Bottom hem tuck at the end | Plain m/c | 1 |
14 | Bottom hem | Flat lock m/c | 1 |
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2025 Sage Publications, Inc. All Rights Reserved