Using Stepwise Regression and Nonparametric Tests to Analyze the Landed Cost Competitiveness of Producing Apparel in Different Countries

• Activity Number: 410 - Social Issues, Trends, Inequality, and Employment
• Type: Contributed
• Date/Time: Tuesday, August 1, 2017 : 2:00 PM to 3:50 PM
• Sponsor: Social Statistics Section
• Author(s): Lori Rothenberg* and Ruth Dede Adikorley and Kristin Thoney-Barletta and Jeffrey Joines
• Companies: NC State University and NC State University and NC State University and NC State University
• Keywords: apparel ; nonparametric ; DOE ; stepwise regression

Abstract

This study analyzed the landed cost competitiveness of producing apparel in 18 countries for the U.S. market, as well the sensitivity of different factors, including labor wages, exchange rates, and productivity, on the cost. Detailed cost models were implemented to compute the landed costs of T-shirts and denim jeans. A Design of Experiments (DOE) with six factors and five levels was generated, yielding a total of 281,250 data points, for both T-shirts and denim jeans. A stepwise regression analysis was used to determine the most significant factors for further experimentation. By using nonparametric multiple comparison tests, the competitiveness of countries in Asia, Sub-Saharan Africa, and the Latin America was analyzed, and what if analyses were performed on the regions.