This is the maximum allowable inventory for an item.
It is used to determine the inventory level at which the system will issue a warning if inventory is too high. It is also used to determine the order quantity for reorder point items.
The maximum inventory can be specified manually or calculated automatically using the maximum inventory method. When calculating automatically, the maximum inventory percentage must be specified first.
The maximum inventory is calculated as:
(Reorder point + order quantity) * maximum inventory percentage
The maximum inventory percentage is updated in the appropriate field. During manual reporting, the maximum inventory method should be 0.