What is shortfall penalty in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: shortfall penalty

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: The total penalty costs incurred as a result of a delivery of a product that is less than the quantity ordered.

Smart SAP Assistant

• Key Concepts: 
  Shortfall penalty is a feature of SAP Supply Network Planning (SNP) that allows users to set a penalty for any shortfall in the supply of goods. This penalty is applied when the actual supply of goods falls below the planned supply. The penalty can be set as a percentage of the total cost of the goods or as a fixed amount. 
  
  How to use it: 
  In order to use the shortfall penalty feature, users must first set up the penalty in the SNP configuration. This can be done by selecting the “Penalty” tab in the SNP configuration and then entering the desired penalty amount or percentage. Once this is done, users can then set up a plan that includes the shortfall penalty. 
  
  Tips & Tricks: 
  When setting up a plan with a shortfall penalty, it is important to consider how much of a penalty should be applied. Too high of a penalty could lead to an overly conservative plan, while too low of a penalty could lead to an overly aggressive plan. It is important to find a balance between these two extremes in order to ensure an optimal plan. 
  
  Related Information: 
  For more information on how to use the shortfall penalty feature in SAP Supply Network Planning (SNP), please refer to SAP Help documentation or contact your local SAP support team.