I would recommend to use funtional object, as long as you don't have external requirements for traceability. IE which serial number was at this location in this produktion date for a specific produktion unit component. (ex. aviation, drug industry).

This has been setup mutiple Times Before, a plan is needed to archive your goal. Pls make an pm if interested. 

Echoing Jorgen's response. Use a functional object, the use case is pretty common.

Out of curiosity - do you own these machines or are they customer-owned? Have you evaluated work orders vs. requests?

Please share your experience here as I am dealing with similar Hierarchy questions.  

We own all the machines we are trying to set up. None of them are moved a lot. They may move a machine to a different production line every once in a while, but it isn’t too common. I started setting them up as Functional Objects, so I will continue that route. Thank you for the responses.

I haven’t evaluated work orders vs requests yet. I did go in to see how I could create work orders and such. I am new to this system, so there is a bit of a learning curve with it. I am very familiar with SAP and have worked on a few transitions. The place I am at now I am starting from scratch, so there is nothing set up now to migrate.