I have an idea, nothing more, about what is the difference. To make this 
simple, a warehouse has a postal address and a location tells in what corner of 
the building the item is. By some funny coincidence, your guess matches mine.

Your second question is much more interesting. There are businesses where you 
sell your stuff on commission, ie. a shop carries your goods but buys (and 
pays) you only after the piece has actually been sold. Until sold, the widgets 
remain yours, and you have an interest in knowing what is where, and how much 
capital is tied up by unsold stock at your clients premises. So yes: Go and 
make your partner a warehouse if this is useful for your business.

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