The primary issue with capacity problems is the unknown demand and high capital investments in typical drug manufacturing. One area that might help the drug manufacturer is flexibility and processes. Jacobs and Chase (2020) defined the economics of scope as the idea that multiple products could be produced at a lower cost and combinations rather than separately. If the manufacturing process for the drug was similar to another drug, the high cost of investment capital might be mitigated because of the possible future drugs that could use the same process or equipment. Because of the high cost of capital investment, forecasting is imperative because one of the worst things that can happen is not to have enough of a product and lose sales.

Is the idea of economic scale a concern with drug manufacturers?