Question

What capacity problems are encountered when a new drug is introduced to the market?

Short answer

The major problems come from the medicine's unpredictable demand as well as the substantial financial investment generally requirements of the modern drug manufacture.

Step-by-step solution

Capacity problems

The launching of fresh items to the market that has never existed before is referred to as the launch of innovative products. These items are designed to solve upcoming concerns or combat existing problems. Individuals have diverse reactions to new things, which might be favorable as well as bad.

A few consumers may embrace new items as well as support them by purchasing more of them, whilst others may refuse to purchase the item since it is new and has not been proven.

The capacity problems are encountered when a new drug is introduced to the market

The greatestproblems come from the drug's unpredictable demand as well as the significant financial investment generally requirements of the modern drug manufacture. Since this is a new drug, there is no past sales information to base future need estimates on.

Significant capital assets will be underused if projections are excessively optimistic. If projections are too short, there may not be enough capital resources to satisfy specific requirements, resulting in missed revenues when the latest drug's expense is normally the maximum.