Product &1 at location &2: Shelf life costs are lower than storage costs

What causes this issue?

The 'continue using expired product' shelf life option has been set for
product &V1& at location &V2&. The penalty costs for going past the
shelf life expiration date are &V3&. A bucket exists in which the costs
of &V4& for storing the product are higher than these penalty costs.

System Response

The optimizer will consider a large quantity of the product (as allowed
by the other planning problem conditions) as expired: This is less
expensive than storing the product whose shelf life has not expired.

How to fix this error?

Increase the penalty costs for going past the shelf life or reduce the
costs for storing the product, so that the penalty costs exceed the
storage costs.

Error message extract from SAP system. Copyright SAP SE.