How To Fix /SAPAPO/PP_OPTIMIZER400 - Penalty costs for non-delivery too low

SAP Error Message - Details

• Message type: E = Error

• Message class: /SAPAPO/PP_OPTIMIZER -

• Message number: 400

• Message text: Penalty costs for non-delivery too low

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /SAPAPO/PP_OPTIMIZER400 - Penalty costs for non-delivery too low ?

  The SAP error message /SAPAPO/PP_OPTIMIZER400 indicates that the penalty costs for non-delivery in the APO (Advanced Planning and Optimization) system are set too low. This can lead to suboptimal planning results, as the optimizer may not adequately account for the costs associated with failing to meet delivery commitments.
  Cause:
  
  Low Penalty Cost Settings: The penalty costs for non-delivery are configured in the system but are set at a level that does not reflect the actual business impact of non-delivery.
  Inadequate Cost Structure: The cost structure in the planning scenario may not be aligned with the real-world implications of not delivering products on time.
  Configuration Issues: There may be issues in the configuration of the planning parameters or the optimizer settings that lead to this message being triggered.
  
  Solution:
  
  
  Review and Adjust Penalty Costs:
  
  Navigate to the relevant configuration settings in SAP APO.
  Check the penalty cost settings for non-delivery in the planning book or the optimizer profile.
  Increase the penalty costs to a level that accurately reflects the business impact of non-delivery.
  
  
  
  Analyze Cost Structure:
  
  Conduct a thorough analysis of the cost structure related to delivery and non-delivery.
  Ensure that the costs are realistic and reflect the potential losses incurred from not meeting delivery schedules.
  
  
  
  Test and Validate:
  
  After adjusting the penalty costs, run the optimizer again to see if the error message persists.
  Validate the planning results to ensure that they align with business expectations.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for detailed guidance on configuring penalty costs and understanding their impact on the optimizer.
  
  
  
  Engage with SAP Support:
  
  If the issue persists after making adjustments, consider reaching out to SAP support for further assistance.
  
  
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like /SAPAPO/OPTIMIZER to access optimizer settings or /SAPAPO/DP for demand planning settings.
  Planning Books: Review the planning books and data views where penalty costs are defined.
  Business Impact: Understand the implications of non-delivery on customer satisfaction, revenue, and overall business performance to set appropriate penalty costs.
  
  By addressing the penalty cost settings and ensuring they reflect the true cost of non-delivery, you can resolve the error and improve the effectiveness of your planning processes in SAP APO.