Final answer:
The "sawtooth" in the EOQ model refers to the pattern of inventory levels over time, graphically resembling the shape of saw teeth due to the cyclical nature of consumption and replenishment.
Step-by-step explanation:
In the context of the Economic Order Quantity (EOQ) model, the term "sawtooth" refers to b) the pattern of inventory consumption and replenishment over time. This term is descriptive of the graphical representation of inventory levels in the EOQ model, where inventory steadily declines due to usage, drops abruptly when replenishment occurs, and then continues to decline again in a cyclical pattern, resembling the teeth of a saw. The EOQ model is a tool used to determine the optimal order quantity that minimizes total inventory costs, which include holding costs, ordering costs, and sometimes shortage costs. The "sawtooth" does not refer to the aggressiveness of managers in cutting inventory levels, nor is it exclusive to a particular item; the EOQ can be applied to any item that meets certain conditions within inventory management.