MIT Sloan Management Review Article on Pair People and AI for Better Product Demand Forecasting

Hot pink made a comeback this past summer. But as numerous fashion brands eagerly jumped on the Barbie-driven trend, many struggled to get their numbers right. Aldo, an official brand collaborator, saw its Barbie-based platform shoes fly off the shelves within 24 hours, thanks to the viral hashtag #TikTokMadeMeBuyIt.

The Barbie phenomenon highlights a modern dilemma: how to accurately forecast product demand when the commercial landscape is constantly changing. This has always been a challenge, but the retail environment is now more volatile and fad-driven than it was in the past, requiring companies to take demand forecasting to a higher level.

About the Author

Devadrita Nair is a postdoctoral associate at the MIT Digital Supply Chain Transformation lab. Maria Jesus Saenz is director of the MIT Digital Supply Chain Transformation lab and executive director of the MIT supply chain management master’s degree program.

Learn more about MIT SMR.