How To Fix /SAPAPO/PP_OPTIMIZER143 - Product &1: Costs for storage exceed costs for not delivering

SAP Error Message - Details

• Message type: E = Error

• Message class: /SAPAPO/PP_OPTIMIZER -

• Message number: 143

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

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /SAPAPO/PP_OPTIMIZER143 - Product &1: Costs for storage exceed costs for not delivering ?

  The SAP error message /SAPAPO/PP_OPTIMIZER143 indicates that the costs associated with storing a product exceed the costs associated with not delivering it. This situation typically arises in the context of supply chain planning and optimization, particularly when using the SAP Advanced Planning and Optimization (APO) module.
  Cause:
  
  Cost Configuration: The cost settings for storage and delivery may not be configured correctly. If the storage costs are set too high compared to the delivery costs, the optimizer will flag this issue.
  Demand and Supply Mismatch: There may be a mismatch between demand and supply, leading to excess inventory that incurs high storage costs.
  Planning Parameters: The planning parameters, such as lead times, safety stock levels, and order quantities, may not be optimized, leading to inefficient inventory management.
  Product Characteristics: Certain products may have specific characteristics that make them more costly to store than to deliver, such as perishability or high handling costs.
  
  Solution:
  
  Review Cost Settings: Check the configuration of storage and delivery costs in the system. Ensure that they accurately reflect the real-world costs associated with these activities.
  Adjust Planning Parameters: Re-evaluate the planning parameters used in the optimizer. This may include adjusting safety stock levels, lead times, and order quantities to better align supply with demand.
  Inventory Management: Implement better inventory management practices to reduce excess stock and minimize storage costs. This could involve just-in-time (JIT) inventory practices or more frequent deliveries.
  Analyze Demand Patterns: Conduct a thorough analysis of demand patterns to ensure that the planning process is aligned with actual market needs. This may involve using historical data to forecast future demand more accurately.
  Consult Documentation: Refer to SAP documentation or support resources for specific guidance on resolving this error message, as it may provide additional insights or steps tailored to your specific configuration.
  
  Related Information:
  
  SAP APO Documentation: Review the official SAP documentation for APO, particularly sections related to the PP/DS (Production Planning and Detailed Scheduling) module.
  Cost Analysis Tools: Utilize SAP's cost analysis tools to gain insights into where costs are being incurred and how they can be optimized.
  Training and Support: Consider training for your team on SAP APO best practices or reaching out to SAP support for assistance with complex issues.
  
  By addressing the underlying causes and implementing the suggested solutions, you should be able to resolve the error message and improve your planning and optimization processes in SAP.