Can we customize Item Price Master to define the price based on the Inventory Location (Warehouse Location)?

This is probably something like a 1:1 relationship of your Locations and your Price Levels. If you have Locations for: Vancouver, Shanghai, Nairobi then you could have Price Levels with those names too. What will matter is how you assign the price to the customer for these Locations given you can have multiple locations on an order, but one per line. Hope it helps.