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How to configure WMS Parent Child Company Hierarchy

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Our company is a multi-company structure (1 Parent Company (or Holding "TATA") and n Childs Companies "TATA Vehicles", "TATA Motors"...), and each child company is configured independently (1 legal entity for each child company).

In Oracle docs WMS, it's said that :

A Parent Company (3PL) allows you to store inventory based on the location by either dedicating the location for a specific (Client) company or storing an inventory of different companies in Distribution Centers (DCs) given the inventories are distinguishable, physically.


My questions:

1- Child Company must be only a Client Company (External) or could be also internal (child company of the Parent Company like "TATA Vehicles" or "TATA Motors") ?

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