If Location 1 is out of stock I want to supply it from Location 2, but if Location 2 has no stock I want to create a request for quotation from a supplier.
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Well this can be done by using resupply method of odoo. Here attached video that will showing you same. Only here instead of location used warehouse.
Video : https://www.youtube.com/watch?v=KBosDCmHrVQ
Blog : http://pinakinnayi.blogspot.com/2017/12/resupply-warehouseinter-wh.html