"Number of locations" is an input so if the system has been designed to handle up to 10, and not 100, then yes I would absolutely expect it to fail with the higher value.

Developers (and everyone else really) need to think about systems, with the system taking inputs like "number of locations", and producing outputs like "available inventory", and when the input parameters change outside of the designed scope, without the system itself changing, then you should expect things to break.