Which of the following statements is true about tracking dimensions?

A tracking dimension group is essential for defining how specific characteristics of a product are managed and monitored within Dynamics 365 Supply Chain Management. This group allows businesses to track and manage the movement of products based on critical dimensions, such as batch numbers or serial numbers, which are crucial for quality control and compliance purposes. Essentially, without a tracking dimension group, the system would lack the necessary framework to properly manage these dimensions, making it a required component for many products.

In contrast, there are scenarios where tracking dimension groups are not applied. For example, certain products may not require tracking for inventory control, which clarifies why some options suggest it is optional or cannot be added. However, in this context, emphasizing that a tracking dimension group is mandatory for every product reflects the fundamental requirement for accurate inventory tracking and product management within the system. Thus, the correct statement underscores the importance of this aspect in efficient supply chain operations.