Manufacturing Process Management Essay Research Paper

Manufacturing Process
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Manufacturing Process
When new products are introduced into a market, they face several challenges from the market’s response. The products have to be designed to solve the existing problems as well as emerging ones. Products that have a positive reception face fewer problems, whereas those with a negative reception face more challenging problems. Therefore, when a new drug is introduced into the market, it faces several challenges that determine its reception by the masses.
The main capacity problems that new drugs face when introduced to the market include uncertainty in demand and the high capital investment needed to market the product. New drugs lack historical sales information, which makes it difficult to forecast its future demand. Historical data helps determine the existing challenges and establish a means of avoiding such challenges. However, the lack of this information for a new drug means that its production does not guarantee any specific amount of returns because its market acceptance remains unknown (Shajarizadeh & Hollis, 2015). If the forecast is too high, the company may incorporate significant capital resources, which may be underutilized. Consequently, the company will produce a lot of the product, and when the market reception does not match the product forecast, the excess products will be wasted. On the contrary, when the forecast is too low, the company may not invest sufficient capital resources to meet the actual demand. If the demand turns out to be higher than anticipated, the company will lose sales and may not recover its initial investments.
New drugs also face the prom...