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This is usually done manually but you can use the FDM API to programtically create locations en masse if required. Take a look at STRUCTMGR class i the FDM API as this contains all the methods required to do this
I would stay away from any kind of autiomation to create locations. They should always be created within the Web Gui, due to all of the tables in the database that they are associated with.
The point of the API is to give you a 'black box' hook into the application without you having to really understand how it does it's work. Assuming you make the proper API calls, they will create everything properly.
Nothing wrong with using the API, that's why it is there.
Edited by: beyerch2 on May 3, 2012 9:28 AM
I have seen many situations where this is not done properly and the locations have issues. The best method is to use the GUI to create the locations, avoids all issues.