Procurement Management  ·  Level 5
Basic Mathematics And Statistics
Chapter 3: Apply statistical matrices
📚 6 Topics
⚑ What you will be able to do

By the end of this chapter, you will be able to:

  • confidently perform addition, subtraction, multiplication, and division using the correct order of operations
  • accurately calculate the determinants of 2x2 matrices step-by-step
  • correctly find the inverses of 2x2 matrices by following the proper order of operations
  • apply matrices to real business situations to help support your organization's goals

Mastering these skills will help you solve practical problems and make smarter decisions in the workplace!

Compiled by: Jane Chebet

Apply statistical matrices are fundamental in procurement management for organizing and analyzing data related to suppliers, costs, quantities, and contract terms. Matrices allow procurement professionals to handle multiple variables simultaneously, facilitating decision-making and performance evaluation. Mastery of matrix operations enhances data manipulation efficiency, enabling better negotiation strategies and cost control in Kenyan procurement environments.

3.1 Introduction to matrices

Matrices provide a structured way to represent data in rows and columns, useful for handling multiple procurement variables such as prices, quantities, and supplier ratings. A matrix is a rectangular array of numbers arranged in rows and columns. The size of a matrix is given by the number of rows \(m\) and columns \(n\), denoted as an \(m \times n\) matrix.

$$ A = \begin{bmatrix} a_{11} & a_{12} & \cdots & a_{1n} \\ a_{21} & a_{22} & \cdots & a_{2n} \\ \vdots & \vdots & \ddots & \vdots \\ a_{m1} & a_{m2} & \cdots & a_{mn} \end{bmatrix} $$

Worked Examples

Example 1: Represent the quantities of three items procured from two suppliers in a matrix. Supplier 1 supplies 10, 15, and 20 units of items A, B, and C respectively. Supplier 2 supplies 12, 18, and 25 units of the same items.

Given: Supplier 1 quantities = 10, 15, 20; Supplier 2 quantities = 12, 18, 25

$$ Q = \begin{bmatrix} 10 & 15 & 20 \\ 12 & 18 & 25 \end{bmatrix} $$

Answer:
Matrix \(Q\) successfully represents the quantities supplied by each supplier.

Example 2: Define a \(3 \times 2\) matrix representing prices per unit (in Ksh) for three items from two suppliers. Supplier 1 prices: 50, 75, 100; Supplier 2 prices: 55, 70, 95.

Given: Supplier 1 prices = 50, 75, 100; Supplier 2 prices = 55, 70, 95

$$ P = \begin{bmatrix} 50 & 75 \\ 100 & 55 \\ 70 & 95 \end{bmatrix} $$

Answer:
Matrix \(P\) is a \(3 \times 2\) matrix showing prices for each item from two suppliers.

Example 3: Identify the order of the matrix below representing supplier ratings for four criteria across three suppliers:

$$ R = \begin{bmatrix} 4 & 3 & 5 & 2 \\ 5 & 4 & 4 & 3 \\ 3 & 5 & 3 & 4 \end{bmatrix} $$

Given: Matrix \(R\) dimensions

Number of rows = 3, number of columns = 4

Answer:
Matrix \(R\) is of order \(3 \times 4\), representing three suppliers rated on four criteria.

Practice Questions

  1. Construct a matrix representing the monthly procurement costs (in Ksh) for five items over three months: January (1000, 1500, 1200, 1300, 1400), February (1100, 1600, 1250, 1350, 1450), March (1050, 1550, 1300, 1400, 1500). (5 marks)

  2. Given a matrix of supplier delivery times (in days) for four suppliers and three products, identify the size of the matrix if it has 4 rows and 3 columns. (2 marks)

  3. Represent the following procurement data in matrix form: Quantities ordered for two items from three suppliers as follows: Supplier 1 (20, 30), Supplier 2 (25, 35), Supplier 3 (30, 40). (3 marks)

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🔒3.2 Operations of matrices

Matrix operations are essential for processing procurement data such as combining supplier costs, adjusting quantities, or calculating total expenses. The primary operations include addition, subtraction, multiplication, and a special form of division related…

🔒3.3 Solving a 2×2 Matrix Reports

In procurement management, 2×2 matrices are often used to organize and analyze supplier evaluation data, cost comparisons, or risk assessment reports. Being able to solve these matrices helps procurement officers to interpret and manipulate data efficiently fo…

🔒3.4 Determinants of a 2×2 Matrix

Determinants provide a scalar value that summarizes certain properties of a matrix, such as invertibility and area scaling in transformations. In procurement management, determinants of 2×2 matrices are useful in assessing whether matrices representing supplie…

🔒3.5 Inverse of a 2×2 matrix

In procurement management, especially in cost analysis, supplier evaluation, and resource allocation, solving systems of linear equations using matrices is a common task. The inverse of a 2×2 matrix is a fundamental operation that allows procurement profession…

🔒3.6 Application of matrices in solving business operations

Procurement management involves multiple business operations that can be modeled and solved using matrices. These include optimizing supplier selection, budgeting, inventory control, and cost allocation. Matrices provide a structured way to handle multiple var…

Chapter Summary

This chapter introduced the fundamental concept of matrices as rectangular arrays of numbers used to organize data. It covered the basic operations on matrices including addition, subtraction, multiplication, and the conditions under which division can be performed. The process of solving matrix equations specifically for 2 by 2 matrices was explained to provide practical problem-solving skills. The chapter detailed how to calculate the determinant of a 2 by 2 matrix, a crucial step in matrix analysis. It also described the method for finding the inverse of a 2 by 2 matrix, which is essential for solving linear systems. Finally, the chapter demonstrated how matrices can be applied to solve real-world business operation problems, highlighting their usefulness in organizing and processing data efficiently.

Self-Assessment

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Written Assessment

  1. Given matrices \( A = \begin{bmatrix} 3 & 5 \\ 2 & 4 \end{bmatrix} \) and \( B = \begin{bmatrix} 1 & 7 \\ 6 & 3 \end{bmatrix} \), find \( A + B \). (2 marks)

  2. For matrices \( C = \begin{bmatrix} 8 & 2 \\ 5 & 9 \end{bmatrix} \) and \( D = \begin{bmatrix} 4 & 6 \\ 3 & 7 \end{bmatrix} \), calculate \( C - D \). (2 marks)

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Am I competent?

At the start of this chapter we promised you would be able to:

  • confidently perform addition, subtraction, multiplication, and division using the correct order of operations
  • accurately calculate the determinants of 2x2 matrices step-by-step
  • correctly find the inverses of 2x2 matrices by following the proper order of operations
  • apply matrices to real business situations to help support your organization's goals

Tick each one you can genuinely do.

So, are you there yet?

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