Final answer:
The correct tool for identifying the best location for a Distribution Center based on customer locations and sales volumes is the center-of-gravity model.
Step-by-step explanation:
A tool used to help identify the optimal location for a Distribution Center (DC) based on the locations and sales volumes of customers is called a center-of-gravity model. This model is utilized to minimize the weighted distance to the geographical location of customers, thereby potentially reducing transportation costs and improving logistics. By considering the locations and sales volumes of customers, the center-of-gravity model helps in pinpointing the best location for a distribution center that serves those customers most efficiently.
Other models like Hotelling Model, Huff Model, and Weber's Location Model also contribute to understanding location strategy, but they focus on different aspects such as competition and transport costs for factories rather than distribution centers specifically. It's important to choose the right model based on the specific business problem being addressed.