How To Fix /SAPAPO/PP_OPTIMIZER171 - Product &1 at location &2: External procurement of larger qty costs less

SAP Error Message - Details

• Message type: E = Error

• Message class: /SAPAPO/PP_OPTIMIZER -

• Message number: 171

• Message text: Product &1 at location &2: External procurement of larger qty costs less

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /SAPAPO/PP_OPTIMIZER171 - Product &1 at location &2: External procurement of larger qty costs less ?

  The SAP error message /SAPAPO/PP_OPTIMIZER171 indicates that there is a discrepancy in the cost structure for a product at a specific location. Specifically, it suggests that external procurement of a larger quantity is more cost-effective than producing the product internally. This message typically arises during the planning process in SAP Advanced Planning and Optimization (APO) when the optimizer is evaluating the cost of production versus external procurement.
  Cause:
  
  Cost Structure: The cost of producing the product internally may be higher than the cost of procuring it externally, especially when considering economies of scale.
  Lot Size Settings: The lot size settings in the planning parameters may not be optimized, leading to inefficient production runs.
  Master Data Issues: There may be incorrect or outdated master data related to costs, such as material master records, vendor pricing, or procurement info records.
  Planning Strategy: The planning strategy used for the product may not align with the actual cost structure, leading to suboptimal planning decisions.
  
  Solution:
  
  Review Costing: Analyze the cost structure for both internal production and external procurement. Ensure that the cost data is accurate and up-to-date.
  Adjust Lot Sizes: Consider adjusting the lot size settings in the planning parameters to better reflect the optimal production quantities.
  Update Master Data: Check and update the material master records, vendor pricing, and procurement info records to ensure they reflect the current cost situation.
  Evaluate Planning Strategy: Review the planning strategy assigned to the product and consider whether it needs to be changed to better align with the cost structure.
  Run the Optimizer Again: After making the necessary adjustments, run the optimizer again to see if the issue is resolved.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like /SAPAPO/OPTIMIZER to access the optimizer settings or /SAPAPO/MC90 for planning book settings.
  Costing Views: Check the costing views in the material master (MM03) to ensure that the cost estimates are accurate.
  APO Configuration: Review the configuration settings in APO related to procurement and production planning to ensure they are set up correctly.
  Documentation: Refer to SAP documentation or help notes for more detailed information on the specific error message and its implications.
  
  By addressing the underlying causes and implementing the suggested solutions, you should be able to resolve the error message and optimize your planning process effectively.