What is penalty cost group profile in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: penalty cost group profile

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Profile that you can use to define that customer demands are to be prioritized in optimizer-based planning in .

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• Key Concepts: 
  A penalty cost group profile is a feature of SAP Supply Network Planning (SNP) that allows users to assign penalty costs to certain activities. Penalty costs are used to represent the cost of not meeting a certain goal or target, such as a delivery date or quantity. The penalty cost group profile allows users to assign different penalty costs to different activities, such as transportation, production, and inventory. 
  
  How to use it: 
  To use the penalty cost group profile, users must first define the penalty costs for each activity. This can be done in the SNP planning book by selecting the “Penalty Cost Group Profile” tab. Once the penalty costs have been defined, they can be assigned to specific activities in the SNP planning book. 
  
  Tips & Tricks: 
  When assigning penalty costs, it is important to consider the impact that they will have on the overall supply chain. For example, if a high penalty cost is assigned to a transportation activity, it may result in higher transportation costs overall. Therefore, it is important to consider the potential impact of assigning penalty costs before doing so. 
  
  Related Information: 
  For more information on how to use the penalty cost group profile in SAP Supply Network Planning (SNP), please refer to SAP Help documentation at https://help.sap.com/viewer/product/SAP_SCM_APO_SNP/7.5/en-US.