Final answer:
Manufacturing involves producing products frequently or in large quantities, is crucial in pharmaceuticals where cost and efficiency are paramount and is influenced by factors such as bulk reducing and bulk gaining considerations and the importance of location in minimizing transport costs.
Step-by-step explanation:
When a product is produced frequently or in inordinate amounts, the process is typically referred to as manufacturing. In the pharmaceutical industry, manufacturing involves complex processes where multiple steps in the synthesis utilize costly chemicals. Efficiency and cost control are significant concerns in this industry, as is evidenced by the focus on improving percent yield in chemical production. A better percent yield means that more of the desired product is obtained from the reactants, reducing waste and expenses.
Manufacturers must decide on the location and type of their factories based on different factors, such as whether they are bulk reducing or bulk gaining industries. Bulk reducing industries are more likely to be located near raw material sources to minimize transportation costs, while bulk gaining industries might locate closer to markets due to increased product weight or transport costs post-manufacturing. A practical example of a bulk gaining industry is Coca-Cola, which manufactures concentrated syrup and ships it worldwide for local bottling, using locally sourced water to produce the final product. This approach minimizes transportation costs and allows for local product variation.
Manufacturing can offer substantial profits due to the added value of transforming basic materials into products with higher use value. However, appropriate management of manufacturing processes is crucial to maximizing benefits and minimizing adverse outcomes, like job losses or environmental damage. As manufacturing practices evolve, there is ongoing research to make drug production more efficient and less costly without compromising the quality of pharmaceuticals.