How To Fix /SAPAPO/PP_OPTIMIZER141 - Product &1: Costs for production exceed costs for not delivering

SAP Error Message - Details

• Message type: E = Error

• Message class: /SAPAPO/PP_OPTIMIZER -

• Message number: 141

• Message text: Product &1: Costs for production exceed costs for not delivering

Self-Explanatory Message

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• What is the cause and solution for SAP error message /SAPAPO/PP_OPTIMIZER141 - Product &1: Costs for production exceed costs for not delivering ?

  The SAP error message /SAPAPO/PP_OPTIMIZER141 indicates that the costs associated with producing a product exceed the costs of not delivering it. This typically arises in the context of production planning and optimization within SAP Advanced Planning and Optimization (APO). Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Cost Structure Issues: The cost of producing the product (including materials, labor, overhead, etc.) is higher than the cost of not fulfilling the order (e.g., lost sales, penalties).
  Production Constraints: There may be constraints in production capacity or resources that make it unfeasible to produce the item at a reasonable cost.
  Incorrect Master Data: The product master data, including cost estimates, may be incorrectly maintained, leading to inaccurate cost calculations.
  Demand and Supply Mismatch: The demand for the product may not justify the production costs, especially if there are alternative products or substitutes available.
  Planning Parameters: The planning parameters set in the system (like lot sizes, safety stock levels, etc.) may not be optimized for the current market conditions.
  
  Solutions:
  
  Review Costing: Check the cost structure of the product in the material master. Ensure that all relevant costs are accurately reflected.
  Adjust Production Plans: If the production costs are indeed too high, consider adjusting the production plan. This could involve changing the production schedule, reducing batch sizes, or even discontinuing the product if it is not profitable.
  Optimize Master Data: Ensure that the product master data is up-to-date and accurately reflects the current market conditions and cost structures.
  Evaluate Demand: Analyze the demand for the product. If demand is low, it may not be worth producing the item. Consider focusing on more profitable products.
  Use Alternative Products: If there are alternative products that can be produced at a lower cost, consider shifting production to those items.
  Consult with Stakeholders: Engage with finance, sales, and production teams to understand the broader implications of production costs and delivery commitments.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP APO for analyzing production planning and costs, such as /SAPAPO/OPTIMIZER for running the optimizer.
  Costing Variants: Understand how costing variants are set up in your system and how they impact the cost calculations for production.
  APO Configuration: Review the configuration settings in APO related to production planning and optimization to ensure they align with your business objectives.
  Documentation: Refer to SAP documentation and notes related to the optimizer and cost calculations for further insights and troubleshooting steps.
  
  By addressing the underlying causes and implementing the suggested solutions, you can resolve the error and improve your production planning processes.