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Is it necessary to use locations?  

It is a big mistake to avoid locations by using a single “dummy” location that has no meaningful use.  Once locations are set up and item location assignments are made, locations are easy to use because of pre-fill behavior and provide many benefits, including facilitating stock counts, finding stock in overflow locations, enhancing issuing and picking accuracy, and using receiving and inspection locations.  Avoiding locations consumes far more time finding stock and tracking down errors than it does to incorporate them into your workflow processes.