As Figure 6.6 shows, the safety stock needed to achieve a given customer service level is proportional to the standard deviation of the demand forecast.
( ( As ( Figure ( 6.6 shows ) ) ) ( , ( ( ( the ( safety stock ) ) ( needed ( to ( achieve ( a ( given ( customer ( service level ) ) ) ) ) ) ) ) ( ( is ( proportional ( to ( ( the ( standard deviation ) ) ( of ( the ( demand forecast ) ) ) ) ) ) ) . ) ) ) )
(ROOT (S (PP (IN As) (NP (NNP Figure) (CD 6.6) (NNS shows))) (, ,) (NP (NP (DT the) (NN safety) (NN stock)) (VP (VBN needed) (S (VP (TO to) (VP (VB achieve) (NP (DT a) (VBN given) (NN customer) (NN service) (NN level))))))) (VP (VBZ is) (ADJP (JJ proportional) (PP (TO to) (NP (NP (DT the) (JJ standard) (NN deviation)) (PP (IN of) (NP (DT the) (NN demand) (NN forecast))))))) (. .)))
Figure 6.6 shows a picture of the demand forecast in relation to the weather forecast.
( ( Figure 6.6 ) ( ( shows ( ( a picture ) ( of ( ( the demand ) ( ( forecast ( in relation ) ) ( to ( the ( weather forecast ) ) ) ) ) ) ) ) . ) )
(ROOT (S (NP (NN Figure) (CD 6.6)) (VP (VBZ shows) (NP (NP (DT a) (NN picture)) (PP (IN of) (NP (NP (DT the) (NN demand)) (VP (VBN forecast) (PP (IN in) (NP (NN relation))) (PP (TO to) (NP (DT the) (NN weather) (NN forecast)))))))) (. .)))