Here you can select the inventory location from where the production order components are to be taken when producing this stockkeeping unit. To see the locations that you have set up in the Location table, click the AssistButton to the right of the field.
Note that the program will use the same location for components as the one stated on the production order. However, by filling in this field, you can redirect the components to another location. Alternatively, you can leave this field blank and specify a location in the Components at Location field in the Manufacturing Setup window.