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Examples A.2 · Example 4

Q.Suppose P1P_1, P2P_2, P3P_3 and R1R_1, R2R_2, R3R_3 are as in Example 2. Let the firm have 330330 units of R1R_1, 455455 units of R2R_2 and 140140 units of R3R_3 available with it, and let the amount of raw materials R1R_1, R2R_2 and R3R_3 required to manufacture each unit of the three products be given by
[!FORMULA] B=(3407935127)B = \begin{pmatrix} 3 & 4 & 0 \\ 7 & 9 & 3 \\ 5 & 12 & 7 \end{pmatrix}
(rows P1,P2,P3P_1, P_2, P_3; columns R1,R2,R3R_1, R_2, R_3). How many units of each product are to be made so as to utilise the full available raw material?

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Let the firm make x,y,zx,y,z units of P1,P2,P3P_1,P_2,P_3. Reading the columns of BB, "use up all the stock" becomes the system 3x+7y+5z=330, 4x+9y+12z=455, 3y+7z=1403x+7y+5z=330,\ 4x+9y+12z=455,\ 3y+7z=140, whose unique solution is x=20, y=35, z=5x=20,\ y=35,\ z=5.

Step 1 — Identify. Turn the "full utilisation" requirement into equations that pin down the production quantities.

Step 2 — Set up variables. Let the firm produce xx units of P1P_1, yy units of P2P_2 and zz units of P3P_3. Read BB down each raw-material column to see how much of that material all products together consume.

Step 3 — Mathematical formulation. Column R1R_1 of BB is (3,7,5)(3,7,5), so R1R_1 consumed is 3x+7y+5z3x+7y+5z; setting it equal to the 330330 in stock, and doing the same for R2R_2 (column (4,9,12)(4,9,12)) and R3R_3 (column (0,3,7)(0,3,7)):

3x+7y+5z=330,4x+9y+12z=455,3y+7z=140.3x + 7y + 5z = 330,\qquad 4x + 9y + 12z = 455,\qquad 3y + 7z = 140.

In matrix form,

(3754912037)(xyz)=(330455140).(1)\begin{pmatrix} 3 & 7 & 5 \\ 4 & 9 & 12 \\ 0 & 3 & 7 \end{pmatrix}\begin{pmatrix} x \\ y \\ z \end{pmatrix} = \begin{pmatrix} 330 \\ 455 \\ 140 \end{pmatrix}. \quad(1)

Step 4 — Solve. Eliminate xx: multiply the first equation by 44 and the second by 33 and subtract,

(12x+28y+20z)−(12x+27y+36z)=1320−1365 ⇒ y−16z=−45 ⇒ y=16z−45.(12x+28y+20z) - (12x+27y+36z) = 1320 - 1365 \ \Rightarrow\ y - 16z = -45 \ \Rightarrow\ y = 16z - 45.

Substitute into the third equation 3y+7z=1403y+7z=140:

3(16z−45)+7z=140 ⇒ 55z=275 ⇒ z=5,3(16z-45) + 7z = 140 \ \Rightarrow\ 55z = 275 \ \Rightarrow\ z = 5, …

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