| 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