BoothPharma is a producer of sterile injectable Floxuridine, a drug used to treat cancers of the digestive system. Recently, BoothPharma has noticed that the demand for the drug has started to consistently exhibit substantially higher variability. On average, BoothPharma's manufacturing line for this product currently runs at 90% utilization twenty-four hours per day. Here are some facts to consider:

The shelf-life of the product is roughly 3 years.

Additional capacity can be purchased.

Warehouses can be rented.

Contract manufacturers are also available if BoothPharma prefers to outsource production. How should BoothPharma respond to the higher variability of demand? Justify your answer.