In this particular case, it covered a dozen copies of the key. There was a small chunk of gold left in the chamber next to all the copies of the key. I removed the key copies and kept the gold in the chamber for future replications.
I did the same with the portal compass and the dungeon glasses. The replicator would increase and decrease in size based on how large the item being replicated was combined with how many copies were being replicated.
It basically sized itself to fulfill the job it needed to. Nothing complicated about that. Fancy, but not complicated. I made dozens, then hundreds, then thousands of copies of the 3 dungeoneer items necessary for people to tackle the dungeons.