Hi;

Products in Stock location are products ready for Sale, or ready to be used (or ready to be moved to another location, or to be returned to Supplier ...).

Products in OUTPUT Location are products Solde (but not yet deliverd) (this also means, that those products are moved there waiting to be moved to another location).

When delivered, those products will be moved to (an external) a Customer location.

This is a typical organisation structure for stock management and Warehouse management. And it matches to the workflow (commonly used) of the sale process.

Just a typical, but not the only one.

My question: What do you really mean by sub-contractor (relatively to the stock management ) ?