Is it possible to move items from stock to another location in the production?

By now, the system is configured in a way that every time something leaves the stock, the next destination is “Production” (10,000m^2). Consequently, we face huge losses due to having items spread all over the production.

The problem behind is that in order to have the right numbers in navision for the stock level, they have to be at “Production” when material is used by the machine. My question is following: is it possible to set particular machine in the production area as a location, so that when material is used by particular machine, it is also stated in Navision that items are connected to that machine, and not to the whole production area?

The end-goal is to have item movements from one particular location to another, passing that “Production” bin, in order to have a complete control over the items.

Thank you in advance!