How To Fix /SAPAPO/PP_OPTIMIZER401 - Product &1 in location &2: Non-delivery penalty costs too low

SAP Error Message - Details

• Message type: E = Error

• Message class: /SAPAPO/PP_OPTIMIZER -

• Message number: 401

• Message text: Product &1 in location &2: Non-delivery penalty costs too low

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /SAPAPO/PP_OPTIMIZER401 - Product &1 in location &2: Non-delivery penalty costs too low ?

  The SAP error message /SAPAPO/PP_OPTIMIZER401 indicates that there is an issue with the non-delivery penalty costs for a specific product at a given location in the Advanced Planning and Optimization (APO) module. This error typically arises during the planning process when the optimizer is unable to find a feasible solution due to the non-delivery penalty costs being set too low.
  Cause:
  
  Low Non-Delivery Penalty Costs: The non-delivery penalty costs for the product in question are set too low, which means that the optimizer does not consider it costly enough to avoid stockouts or non-delivery situations. As a result, it may not prioritize fulfilling demand for that product.
  Demand and Supply Imbalance: There may be a significant imbalance between demand and supply, leading to situations where the optimizer cannot meet demand without incurring penalties.
  Configuration Issues: There may be issues with the configuration of the planning parameters or master data that affect how the optimizer calculates costs.
  
  Solution:
  
  
  Adjust Non-Delivery Penalty Costs: Increase the non-delivery penalty costs for the affected product in the location. This can be done in the product master data or in the planning book settings.
  
  Navigate to the product master data in APO and adjust the non-delivery penalty costs to a more realistic value that reflects the true cost of not delivering the product.
  
  
  
  Review Demand and Supply: Analyze the demand and supply situation for the product. Ensure that the demand is accurately forecasted and that there is sufficient supply to meet that demand.
  
  Check for any changes in demand patterns or supply constraints that may need to be addressed.
  
  
  
  Check Configuration: Review the configuration settings in APO to ensure that they are set up correctly. This includes checking the planning parameters, product master data, and any relevant settings in the optimizer.
  
  Ensure that the planning strategy and other relevant settings are aligned with the business requirements.
  
  
  
  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/MAT1 to access product master data or /SAPAPO/OPTIMIZER to run the optimizer.
  Documentation: Refer to SAP documentation for detailed information on configuring non-delivery penalty costs and understanding the optimizer's behavior.
  Support: If the issue persists after making adjustments, consider reaching out to SAP support or consulting with an SAP APO expert for further assistance.
  
  By addressing the non-delivery penalty costs and ensuring that the planning parameters are correctly configured, you should be able to resolve the error and improve the planning process in SAP APO.