In Bangladesh, Most of the textile entrepreneurs are first generation entrepreneurs. They start business in small scale, nursing the business& bring it up at today’s stage .
Capability of workforce increase day by day, So most the factory management want to allocate Majorities of manufacture capacity for high value products & reduce the capacity for basic products. some times entrepreneurs were taken investment decision based on fashion trend.Marketing team also try to take diversified products to increase sales value, some times require further investment on capital machinery’s. Some times, investment decision was taken based on Brand’s forecast.
In Practical, most of the factories can’t utilize their full manufacturing capacity with their own orders, means few porting of manufacturing capacity remain idle. Buyers are cutting down lead time. Earlier Lead time was 120 days, now it becomes 21 to 45 days of major customers. So to produce goods within time frame, factories have use the idle capacity of others factories.