What is the difference between a storage location and a warehouse in SAP?

Inventory can be managed at different levels depending on the business requirement. Companies with relatively basic stock management can use the inventory management (storage location) functionality to manage stocks, while warehouse management is used for companies such as large consumer goods firms with intricate warehouse facilities that includes complex racks, pallets, storage bins with varying materials stored across the warehouse. The Warehouse number, storage type, picking area and storage bin are components of the structure of a warehouse.