The program uses the maximum inventory minus the safety stock quantity to calculate order proposal quantities.

Note
Depending on the current inventory at the time, this may result in order proposal quantities that cause the projected available balance to exceed the maximum inventory that you define.

This field is used only with reordering policy Maximum Qty.. It is disabled for all other reordering policy options.

Note
For optimal results, you should set up this field so that the reorder point is smaller than the maximum inventory and larger than the safety stock.

The Reorder Quantity field plays a role in calculating the overflow level. For more information, see Design Details: Staying under the Overflow Level.

Reference