| Capacity= INTEG ( |
| investment-reductions, |
| target capacity ) |
Units: Gadget/Month
| capacity adjustment= |
| (target capacity - Capacity)/time to adjust capacity |
Units: Gadget/Month/Month
| capacity life= |
| 20 |
Units: Month
| desired production= |
| target capacity |
Units: Gadget/Month
| investment= |
| capacity adjustment |
Units: Gadget/Month/Month
| potential production= |
| Capacity |
Units: Gadget/Month
| production= |
| MIN(desired production, potential production) |
Units: Gadget/Month
| reductions= |
| Capacity/capacity life |
Units: Gadget/(Month*Month)
| target capacity= |
| word of mouth demand * widgets per person |
Units: Widget/Month
| time to adjust capacity= |
| 12 |
Units: Month