Desired production is a short-term decision that typically calls for temporary
under- or over-utilization of production capacity (e.g., "overtime"). This model
jumpstarts the production process by targeting the fraction of productive capacity that
will be utilized. Once "desired production" is determined, decisions on utilization of
labor and capital will follow.
The main target of the model is to develop the system dynamics model about
Production Target for Ukraine. The driving force is aggregate demand: the sum of
household consumption, government consumption, and net exports. The desired
production depends on aggregate demand and desired inventories.