You can use GREATESTand LEASTin combination with the function SUM:
SQL Fiddle
Oracle 11g R2 schema setup :
CREATE TABLE table_name ( ITEM, LOCATION, QUANTITY ) AS
          SELECT 100, 'KS', -10 FROM DUAL
UNION ALL SELECT 100, 'KS', -10 FROM DUAL
UNION ALL SELECT 100, 'KS', -20 FROM DUAL
UNION ALL SELECT 100, 'KS',  10 FROM DUAL
UNION ALL SELECT 100, 'KS',   5 FROM DUAL
UNION ALL SELECT 200, 'KS',  10 FROM DUAL
UNION ALL SELECT 200, 'KS',  20 FROM DUAL
UNION ALL SELECT 200, 'KS',   5 FROM DUAL
Request 1 :
SELECT item,
       location,
       SUM( GREATEST( quantity, 0 ) ) AS positive_quantities,
       SUM( LEAST( quantity, 0 ) )    AS negative_quantities
FROM   table_name
GROUP BY item, location
Results :
| ITEM | LOCATION | POSITIVE_QUANTITIES | NEGATIVE_QUANTITIES |
|------|----------|---------------------|---------------------|
|  100 |       KS |                  15 |                 -40 |
|  200 |       KS |                  35 |                   0 |
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