Which feature allows organizations to track the location of lost devices?

Managed Lost Mode is the feature that allows organizations to track the location of lost devices. This mode is integrated into Mobile Device Management (MDM) solutions, enabling administrators to remotely enable Lost Mode on a device. When enacted, Lost Mode locks the device with a passcode and displays a custom message, making it easier for anyone who finds the device to return it.

Additionally, when Lost Mode is activated, the device's location can be tracked using Apple's location services. This is particularly useful for organizations concerned with securing their devices and recovering them if they are misplaced or stolen.

While Find My iPhone is a related feature that allows individual users to track their own devices, Managed Lost Mode is specifically tailored for organizations to manage multiple devices efficiently within an MDM framework. Thus, it enhances the ability to locate and secure lost devices at an organizational level, making it the correct answer in this context.