How does Dynamics 365 support multi-site manufacturing?

Dynamics 365 Supply Chain Management supports multi-site manufacturing primarily by providing centralized management for multiple production facilities. This centralized approach allows businesses to streamline operations across various locations, enabling them to monitor and control production activities from a single platform. It ensures that resources, schedules, and inventory are optimally managed, allowing for efficient use of materials and labor across different sites.

With centralized management, companies can gain better visibility into their entire manufacturing process, making it easier to track performance, minimize disruptions, and uphold standards across different facilities. Additionally, this central control facilitates the sharing of best practices and helps maintain consistency in quality and output, which are vital in today's competitive manufacturing environment.

This differentiates the correct answer from the others, as decentralizing production management would lead to challenges in coordination and control, increasing onsite inventory does not inherently improve multi-site management, and minimizing supplier interactions could negatively impact supply chain efficiency rather than support multi-site dynamics.