RE: What does Source Type and Source no. means and used for in Navision 2018?
Each relates back to a different way of planning.
Item: can be for order or stock based demand. These orders can be created manually but usually created with the planning tools NAV possesses - MRP and MPS. Could relate back to many orders of planning on that basis.
Family: you build up a collection of finished good or sub assembly items that use a common routing against them. This is done manually only and is outside of the planning tools.
Sales Header: on a sales order you can plan to have the order created as a production order. This is then a single linked order only.
I’d say the most common methods are Item and Sales Header.