Matrix Formation
Matrix formation means arranging given numerical information systematically in rows and
columns according to a specified criterion. In business mathematics, matrices are commonly
formed from data relating to sales, costs, production, prices, inventory, employees, branches,
and other business variables.
A matrix is generally represented as:
A = [aij]m×n
where:
m = number of rows
n = number of columns
aij = element appearing in the ith row and jth column
For example, suppose a company sells three products—A, B, and C—through two branches.
Their monthly sales are given below:
Branch 1: Product A = 100, Product B = 150, Product C = 200
Branch 2: Product A = 120, Product B = 180, Product C = 250
The information can be represented in matrix form as:
A = [100 150 200
120 180 250]
Here, the rows represent the two branches and the columns represent the three products.
Since the matrix contains 2 rows and 3 columns, its order is:
2×3
The position of an element helps to identify its meaning. For example:
a12 = 150
This means that the sales of Product B at Branch 1 are 150 units.
Similarly:
a23 = 250
This means that the sales of Product C at Branch 2 are 250 units.
Steps in Matrix Formation
The following steps are generally followed while forming a matrix:
1. Identify the variables or categories to be represented.
2. Decide which categories will be represented by rows.
3. Decide which categories will be represented by columns.
4. Arrange the numerical values in their appropriate row-column positions.
5. Determine the order of the matrix.
Example of Matrix Formation from Business Data
Suppose a company manufactures three products P1, P2, and P3. The production quantities
during January and February are as follows:
January: P1 = 500, P2 = 300, P3 = 400
February: P1 = 600, P2 = 350, P3 = 450
Taking the months as rows and the products as columns, the production matrix can be written
as:
P = [500 300 400
600 350 450]
The order of the matrix is:
2×3
Here, the first row represents production during January and the second row represents
production during February.
Matrix Formation from Equations
Matrices can also be formed from simultaneous linear equations.
Consider:
2x + 3y = 10
4x + 5y = 18
The coefficients of x and y can be arranged into the following matrix:
A = [2 3
4 5]
The variables can be represented as:
X = [x
y]
The constants can be represented as:
B = [10
18]
Therefore, the system of equations can be written in matrix form as:
AX = B
Business Example
Suppose the annual sales, in ₹ lakh, of four products A, B, C, and D in three regions are
represented as follows:
North Region: 20, 25, 18, 30
South Region: 22, 28, 21, 35
East Region: 25, 30, 24, 40
The sales matrix is:
S = [20 25 18 30
22 28 21 35
25 30 24 40]
The rows represent the three regions, while the columns represent the four products.
Therefore, the order of the matrix is:
3×4
Each element of the matrix represents the sales value of a particular product in a particular
region.
Importance of Matrix Formation in Business
Matrix formation is useful in business because it helps to organise a large amount of
numerical information in a compact and systematic form. It also makes comparison and
mathematical analysis easier.
Matrices can be formed to represent:
• Sales data
• Production data
• Costs and expenses
• Inventory levels
• Transportation costs
• Employee information
• Market research data
• Financial information
• Revenue and profit data
• Regional or departmental performance
Proper matrix formation is the first step before performing operations such as matrix addition,
subtraction, multiplication, transpose, determinant, and inverse. Therefore, understanding
how to form a matrix correctly is essential for solving many problems in business
mathematics.