How To Fix /SAPAPO/PP_OPTIMIZER402 - Penalty costs for safety stock shortfall are too low


SAP Error Message - Details

  • Message type: E = Error

  • Message class: /SAPAPO/PP_OPTIMIZER -

  • Message number: 402

  • Message text: Penalty costs for safety stock shortfall are too low

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Smart SAP Assistant

  • What is the cause and solution for SAP error message /SAPAPO/PP_OPTIMIZER402 - Penalty costs for safety stock shortfall are too low ?
    The SAP error message /SAPAPO/PP_OPTIMIZER402 indicates that the penalty costs for safety stock shortfall are set too low in the system. This error typically arises during the planning process in SAP Advanced Planning and Optimization (APO) when the optimizer is unable to effectively balance inventory levels against the defined penalty costs for stockouts or safety stock shortfalls.
    
    Cause: Low Penalty Costs: The penalty costs for safety stock shortfalls are defined in the planning book or in the product master data. If these costs are set too low, the optimizer may not prioritize maintaining safety stock, leading to potential stockouts.
    Configuration Issues: There may be issues with the configuration of the planning parameters or the optimizer settings that do not align with the business requirements. Inadequate Safety Stock Levels: The safety stock levels themselves may be set too low, which can lead to frequent shortfalls, especially in volatile demand scenarios.
    Solution: Adjust Penalty Costs: Review and increase

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