Hi Jaisree,
Did you maintain the blocks manually or add them as a reference cycle? SAP_CDPBP_02 works based on cycle definitions. Please, make sure that there is a Cycle Start and a Cycle End in the blocks. Then, it should be possible to execute the heuristic for a block that is inside that cycle - if there is an overload in the selected block, the limits will be adjusted so that all activities can be scheduled.
Other than that, SAP_CDPBP_02 will call SAP_CDPBP_01 as a follow-up heuristic to reschedule the activities in the adjusted blocks.
The strategy settings used by SAP_CDPBP_01 are hardcoded, such that changing Strategy Profile will not affect the behavior. The exact strategy can be seen in SAP_CDPBP_01's documentation in /SAPAPO/CDPSC11.
Regards,
Tiago