Pfizer Inc. is evaluating its COGS for a new drug manufacturing process:

Requirements:

• Calculate the COGS using the formula: COGS = Raw Material Costs + Labor Costs + Allocated Facility Overhead.
• COGS Table with the following values:
  • Raw Material Costs: $3,000,000
  • Labor Costs: $1,500,000
  • Allocated Facility Overhead: $1,000,000

• Recommend strategies to reduce COGS by 12% through supply chain optimization.
• Discuss how reducing COGS aligns with Lean principles in pharmaceutical manufacturing.
• Provide a financial projection illustrating potential cost savings for Pfizer.

COGS Table:

Category	Amount ($)
Raw Material Costs	$3,000,000
Labor Costs	$1,500,000
Allocated Facility Overhead	$1,000,000
Total COGS	$5,500,000