I understand that production require moves from stock location to production location (the consumed raw materials) and from production to stock the finished product.And I have seen the internal move each mo creates, my question is what is that move required for? If production is done between stock and virtual location "production" what is the point of this?

If you want to track production operations and/or production order by factory, shops and work centers, you must define routes with location_id where raw materials is prepared for consume. In that manner raw materials are moved from stock to route location_id at confirming and from route location_id to virtual production location at produce event. The internal shipping picking is in fact a 'reservation' picking for production. If you have no route or if your route location_id is finished goods location, then the internal shipping check if you have enough raw material in stock location.

That makes sense when you put it like that, thank you filsys!