SCSI must be terminated at the two ends of the cable. The device id has no relevance. Any device can have any id, including the controller. I believe the id is tied to a priority order, but I doubt many people need to change them.
You can put any device, including the controller, anywhere on the cable. Typically people put the controller at an end as that has a built in terminator. Older devices don't have terminators, but more and more devices these days do. There are two types of terminators. Active and passive. The difference is an active terminator uses a small voltage regulator and ties all the lines to that voltage via resistors. Passive terminators just use resistors to the +5v and ground. As the +5v may not be +5v at the end of the cable, the termination is not as good as the active.
You can buy terminators seperatly. Typically they are very expensive for what they are. ($20-$30) I did find and buy one for under $10 a few years ago, but it took time to find one for that price. I'm guessing SCSI drive manufactorers are including terminators on the drives more and more now to simplify and reduce the cost of a SCSI system. I think there may even be auto termination out there, but if someone said that was a load of BS, believe them not me.
So, look to see which device is at the end and check it has either a built in terminator that is either enabled or automatic, or an external one.