The algorithms big companies use to manage their supply chains don’t work during pandemics

Even during a pandemic, Walmart’s supply chain managers have to make sure stores and warehouses are stocked with the things customers want and need. COVID-19, though, has thrown off the digital program that helps them predict how many diapers and garden hoses they need to keep on the shelves. Normally, the system can reliably analyze things like inventory levels, historical purchasing trends, and discounts to recommend how much of a product to order. During the worldwide disruption caused by the COVID-19 pandemic, the program’s recommendations are changing more frequently. “It’s become more dynamic, and the frequency we’re looking at it has increased,” a Walmart supply chain manager, who asked not to be named because he didn’t have permission to speak to the media, told The Verge. Most retail companies rely on some type of model or algorithm to help predict what their customers will want, whether it be a simple Excel spreadsheet or a refined, engineer-built program. Normally, those models are fairly reliable and work well. But just like everything else, they’re affected by the pandemic.