One of the more pervasive changes in the manufacturing environment is the implementation of enterprise resource planning (ERP) systems. Manufacturing planning and control (MPC) is now embedded in ERP systems in a great number of organizations. This both increases the opportunities for effective management and the complexity of integration required. No MPC activity can now ignore the pervasiveness of ERP systems.

The customer still remains king in the competitive manufacturing environment. The capabilities of manufacturing plus the expectations of customers has led to increased pressure for both speed and variety. Customers are demanding more tailoring in the products that they order and want them faster than ever. Part of this is derived from the expectation of shortened product life cycles, while part is derived from customers wanting more individualized treatment.

A major change that has continued over all the editions of this book is that of globalization. Even small and medium-size enterprises now have manufacturing facilities in countries other than their own. In some instances, this is a complex network of facilities. In others it is a single manufacturing or manufacturing/marketing subsidiary. The implications of this are that the geographic reach and diversity of environments within which the material planning and control system must operate has increased and will continue to do so.

Partly as consequence of the internationalization of business and partly as a response to outsourcing as companies focus on their core competencies, the interconnectedness of manufacturing firms has increased substantially. The implication of this is that companies are now often integrated as customers of their suppliers and integrated with their customers whom they supply in complicated ways. This has created the need to manage some very complex supply chains or networks. In some instances, firms in these supply networks will find themselves competing with customers and suppliers while simultaneously trying to develop mutually beneficial relationships for some portion of their product line. Increasingly, firms have a mixture of industrial and consumer markets that require different channels, which also increases the complexity of the manufacturing relationships. These relationships must be incorporated in the MPC system of the firm.

Comments on the Sixth Edition

In a sense, this edition of the book is designed to recognize the maturity of much of the material in this book. Since the first edition, published in 1984, the techniques and concepts in the book have developed to where now most of the ideas are commonly available in ERP systems. So, in this edition, we have significantly streamlined the presentation of the basic ideas. Our idea is that many of the readers of this book are students just learning the material and who will appreciate a concise presentation of the material with clear examples. We have, therefore, removed much of the "research", oriented material that was included in previous editions. We have removed some of the ideas that are not in common use while adding new ideas that are now commonly used.

The first eight chapters of the book provide a thorough coverage of manufacturing planning and control. In the spirit of previous editions of the book, our coverage is extensive and complete, yet as concise as we feel is reasonable. We are careful in our use of terminology so as not to confuse the reader by minimizing the use of "lingo" while introducing the vernacular of the operations and supply chain management professional. Terminology and the organization of the topics closely follow that used by APICS—the Association for Operations Management—in the APICS Dictionary and in the APICS Body of Knowledge Framework (which was co-authored by an author of this book).

The last four chapters of the book focus on the integration of manufacturing with the supply chain. In these chapters, our emphasis is on the basic techniques and concepts and we cover them in a manner that corresponds to how they are commonly implemented in ERP systems. Integration of MPC with the logistics and warehousing functions in the firm can no longer be an "arm's length" activity. Speed and efficiency require tight integration of these activities with minimal inventory buffering. Complicating matters is the of common outsourcing of the shipping and warehousing activities, which places complex supply chain–related demands on the MPC system.

It is our contention that the supply chain professional of the future needs a very strong understanding of the material in this book. Just like the professional accountant must understand the basics of assets, liabilities, the balance sheet, and the income and expense statements, together with the transactions that generate the data in the accounting systems, so too must the supply chain professional understand a set of basic techniques and concepts. The aggregate plan, master schedule, material requirements planning, and distribution requirements planning tables tie the manufacturing function to the supplier on the inbound side and the customer on the outbound side in terms of material and inventory. Logic such as regression analysis, exponential smoothing, availability to promise, material planning, and reorder points are the decision support tools that assist the professional make rational decisions within the realm of manufacturing and supply chain planning.

This book is designed to be an essential resource for both the student of the field and the practicing professional. Mastery of the contents provides a solid foundation on which comprehensive, firm-specific implementations can be developed. It is our contention that each firm has unique requirements dependent on special supplier and customer requirements. A sustainable competitive advantage comes from taking an innovative approach to how material and inventory is managed. A comprehensive understanding of the key concepts and techniques available is essential to structuring and implementing the supply chain material and inventory planning systems used by the firm. This book is designed to support this understanding.