Procurement Management  ·  Level 6
Basic Mathematics And Statistics
Chapter 2: Apply statistical equations
📚 6 Topics
⚑ What you will be able to do

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

  • Determine linear equations correctly based on given objective functions.
  • Accurately find quadratic equations that match specific objective functions.
  • Formulate simultaneous equations correctly to solve multiple objectives at once.
  • Compute break-even analysis accurately to understand when costs and revenues balance.
  • Carry out differentiation and integration correctly to analyze changes and total values.
  • Formulate total revenue, total cost, and profit equations accurately according to organizational goals.

These skills will help you make smart, data-driven decisions that are essential for success in any technical or business trade.

Compiled by: Jane Kamau

Procurement management professionals frequently encounter mathematical problems involving quadratic and simultaneous equations when analyzing cost functions, optimizing resource allocation, or forecasting demand and supply relationships. Mastery of these equations allows for accurate decision-making in contract pricing, budget planning, and supplier negotiations. This chapter develops skills in solving quadratic equations by formula and factorization methods, as well as solving simultaneous equations using substitution, elimination, and matrix methods. Each technique is illustrated with practical examples relevant to procurement scenarios in Kenya.

2.1 Solving linear equations with one or more variables

A linear equation is an equation in which each variable appears only to the first power: there are no squares, square roots or products of variables, and its graph is a straight line. Examples are 5x − 7 = 18 and 1,200a + 800b = 48,000. Solving a linear equation means finding the value of the unknown that makes both sides equal. In procurement, linear equations answer everyday questions such as how many units can be bought within a budget, how far a hired truck can travel for a given amount, or how a formula can be rearranged to find the missing figure.

Terms used

  • Variable (unknown): A letter such as x, y or q that stands for a quantity whose value is to be found.
  • Coefficient: The number multiplying a variable; in 2,400x the coefficient is 2,400.
  • Constant: A fixed number in the equation, such as a delivery charge of 3,000.
  • Expression: A combination of terms such as 2,400x + 3,000.
  • Equation: A statement that two expressions are equal, joined by the sign =.
  • Solution (root): The value of the variable that makes the equation true.

The balance rule

An equation is like a balanced scale: whatever is done to one side must be done to the other so that the two sides stay equal. The permitted operations are:

  • Adding the same number to both sides.
  • Subtracting the same number from both sides.
  • Multiplying both sides by the same non-zero number.
  • Dividing both sides by the same non-zero number.
  • Expanding brackets and collecting like terms on either side.

Steps in solving a linear equation in one variable

  1. Clear fractions by multiplying every term on both sides by the lowest common multiple (LCM) of the denominators.
  2. Remove brackets by multiplying out.
  3. Collect all terms containing the variable on one side and all constants on the other, changing the sign of any term that crosses the equals sign.
  4. Simplify each side by combining like terms.
  5. Divide both sides by the coefficient of the variable.
  6. Check the answer by substituting it into the original equation.

Worked examples: one variable

Example 1: Solve 5x − 7 = 18.

5x − 7 = 18

5x = 18 + 7

5x = 25

x = 25 ÷ 5 = 5

Check: 5 × 5 − 7 = 25 − 7 = 18, which agrees.

Example 2 (brackets): Solve 3(2x − 4) = 2(x + 6).

6x − 12 = 2x + 12

6x − 2x = 12 + 12

4x = 24

x = 6

Check: left side 3(12 − 4) = 3 × 8 = 24; right side 2(6 + 6) = 24, which agrees.

Example 3 (fractions): Solve x ÷ 4 + x ÷ 6 = 15.

The LCM of 4 and 6 is 12. Multiply every term by 12:

3x + 2x = 180

5x = 180

x = 36

Check: 36 ÷ 4 + 36 ÷ 6 = 9 + 6 = 15, which agrees.

Forming equations from procurement problems

Most practical problems are given in words, so the first task is to turn the words into an equation.

  1. Read the problem and identify the unknown quantity.
  2. Choose a letter for the unknown and state what it stands for, with its unit.
  3. Write each piece of information in terms of the letter.
  4. Form the equation from the condition given, such as a total cost or a budget.
  5. Solve the equation.
  6. Answer the question in words, with units, and check that the answer makes sense.

Example 4: A procurement officer has a budget of Ksh 75,000 for printing paper. Each carton costs Ksh 2,400 and the supplier charges a fixed delivery fee of Ksh 3,000. How many cartons can be bought?

Let x be the number of cartons.

2,400x + 3,000 = 75,000

2,400x = 75,000 − 3,000 = 72,000

x = 72,000 ÷ 2,400 = 30

The officer can buy 30 cartons. Check: 30 × 2,400 + 3,000 = 72,000 + 3,000 = 75,000.

Example 5: A truck is hired at a fixed charge of Ksh 2,000 plus Ksh 150 per kilometre. The total charge for one trip was Ksh 9,500. How far did the truck travel?

Let d be the distance in kilometres.

C = 150d + 2,000

9,500 = 150d + 2,000

150d = 7,500

d = 7,500 ÷ 150 = 50

The truck travelled 50 km.

Linear equations with two or more variables

A linear equation in two variables, such as 1,200a + 800b = 48,000, has many solutions: every pair of values that satisfies it. It can be solved for one variable in terms of the other, which shows how a change in one affects the other. A single equation with two unknowns cannot give one unique answer; for that, two equations are needed and are solved together (simultaneous equations, 2.3).

Example 6: A store has Ksh 48,000 to spend on two items: safety helmets (a) at Ksh 1,200 each and reflective vests (b) at Ksh 800 each. Express b in terms of a and find the possible combinations.

1,200a + 800b = 48,000

800b = 48,000 − 1,200a

b = (48,000 − 1,200a) ÷ 800

b = 60 − 1.5a

Helmets (a) Vests (b) = 60 − 1.5a Check: 1,200a + 800b
0 60 48,000
10 45 48,000
20 30 48,000
40 0 48,000

Every extra helmet bought means 1.5 fewer vests, because 1,200 ÷ 800 = 1.5.

The straight-line form y = mx + c

A linear equation in two variables can be written as y = mx + c, where m is the gradient (the change in y for each one-unit increase in x) and c is the intercept (the value of y when x = 0). In Example 5, C = 150d + 2,000 has gradient 150 (the cost per extra kilometre) and intercept 2,000 (the fixed charge). Plotting such equations on a graph is the basis of cost and break-even graphs (2.4 and 2.6).

Changing the subject of a formula

Formulas with several variables are linear in the variable being found, so the same balance rule is used to make that variable the subject.

Example 7: The total cost of an order is T = pq + d, where p is the unit price, q the quantity and d the delivery charge. Make q the subject, and find q when T = 64,500, p = 1,250 and d = 2,000.

T = pq + d

T − d = pq

q = (T − d) ÷ p

q = (64,500 − 2,000) ÷ 1,250

q = 62,500 ÷ 1,250 = 50 units

Common errors to avoid

  • Changing the sign wrongly: A term that moves across the equals sign changes its sign.
  • Doing an operation to one side only: Every operation must be applied to the whole of both sides.
  • Not multiplying every term when clearing fractions: Each term, including whole numbers, must be multiplied by the LCM.
  • Dividing by part of a side: When dividing, divide every term on that side.
  • Not checking: Substituting the answer back into the original equation catches most errors.
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🔒2.2 Solving quadratic equations

Quadratic equations often arise in procurement when modeling costs that depend on quantities squared, such as bulk order discounts or penalty calculations. Being able to solve these equations accurately is essential for determining optimal order quantities or…

🔒2.3 Simultaneous equations

Simultaneous equations model situations where two or more variables interact, such as balancing budgets and quantities in procurement contracts or analyzing supplier cost versus delivery time. Mastering various solution methods enables procurement managers to…

🔒2.4 Breakeven analysis

Breakeven analysis is crucial for procurement managers to determine the point at which total costs equal total revenue, indicating no profit or loss. This helps in deciding the minimum quantity of goods or services to procure or supply to cover costs and avoid…

🔒2.5 Calculus

Calculus equips procurement managers with tools to analyze cost functions, optimize procurement quantities, and forecast trends. Differentiation helps find rates of change such as marginal cost, while integration assists in calculating total costs or accumulat…

🔒2.6 Total revenue, total cost and profit equations formulation

In procurement management, understanding financial outcomes is critical for effective decision-making. Total revenue, total cost, and profit calculations provide essential quantitative insight into supplier contracts, project budgeting, and cost control. These…

Chapter Summary

This chapter covered essential mathematical techniques for solving quadratic equations using the formula method and factorization, enabling the determination of roots in various civil engineering problems. It explored methods for solving simultaneous equations, including substitution, elimination, and matrix approaches, which are vital for handling multiple variable relationships in practical scenarios. The concept of breakeven analysis was introduced to identify the point where costs and revenues balance, supporting effective financial decision-making. Calculus fundamentals were addressed through differentiation and integration, providing tools for analyzing rates of change and accumulated quantities. Finally, the chapter demonstrated the formulation of total revenue, total cost, and profit equations, linking mathematical principles to business and economic evaluations in engineering projects. Together, these topics equip students with a robust foundation in applying statistical and mathematical equations to solve real-world technical and financial challenges in the field.

Self-Assessment

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Written Assessment

  1. A procurement manager needs to solve the quadratic equation \(x^2 - 5x + 6 = 0\) to determine possible quantities of an item to order. Use the formula method to find the values of \(x\). (3 marks)

  2. Solve the quadratic equation \(2x^2 - 7x + 3 = 0\) by factorization to find the order quantities that satisfy the cost constraints. (4 marks)

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Chapter Examination Questions

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SECTION A (40 Marks) - Answer ALL Questions

  1. A procurement officer at a county government is solving the quadratic equation \(2x^2 - 5x - 3 = 0\) to determine the optimal number of suppliers to invite for a tender. Solve for \(x\) using the formula method. (4 marks)
  2. Factorize the quadratic expression \(x^2 + 7x + 10 = 0\) to find the values of \(x\) that minimize procurement costs. (4 marks)
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Am I competent?

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

  • Determine linear equations correctly based on given objective functions.
  • Accurately find quadratic equations that match specific objective functions.
  • Formulate simultaneous equations correctly to solve multiple objectives at once.
  • Compute break-even analysis accurately to understand when costs and revenues balance.
  • Carry out differentiation and integration correctly to analyze changes and total values.
  • Formulate total revenue, total cost, and profit equations accurately according to organizational goals.

Tick each one you can genuinely do.

So, are you there yet?

You're competent when you can confidently do 50% or more of what this chapter promised.

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