Simple Example of a Plan 

  Labor Constraint 

  Balance Sheets of goods 

To construct balance sheets for individual products, we need the following two type of information:

1) Final Use part of the plan 

2) Input - Output Technical Coefficients

For a balance sheet of specific good only respective rows are needed. For example for balance sheet of ag only the first row of the Final Use matrix and the first row of the Technical Coefficients matrix are needed. The meaning of the technical coefficients is as follows:  The rows are inputs and the columns are outputs. So for example the ag-ag coefficient means that to produce one unit of ag  0.14 units of the very same ag must be used as input. The bg-ag (first row) coefficient means that 0.08 units of ag is needed to produce one unit of bg.

The balance sheets for the other goods are constructed in the same way.

A Complete Set of Balance Sheets 

 

 

 

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