Designing a Continuous Operational Feedback Loop for Direct-to-Consumer Commerce: Integrating Event-Driven Automation and On-Premise Generative AI

This paper proposes the Continuous Operational Feedback Loop (COFL) architecture, a fully localized, event-driven operational monitoring and response system for Direct-to-Consumer (D2C) commerce. The architecture integrates the n8n workflow engine with on-premise large language model (LLM) inference via the Ollama framework, forming a containerized stack deployable on commodity CPU-only edge hardware (~USD 1640). Using a multi-source dataset of 1800 records constructed from publicly available e-commerce corpora and evaluated with a silver-standard automated labeling protocol, empirical validation demonstrates an end-to-end latency of 3.22 s and a macro-F1 sentiment classification score of 0.836—representing 98.2% of the full-precision baseline and 94.0% of cloud GPT-4o API generation quality measured by ROUGE-L—at approximately 1/200th of the per-request inference cost. A systematic quantization ablation study across six model-quantization configurations establishes LLaMA 3 8B Q4_K_M as the Pareto-optimal selection for the target hardware. An Analytic Hierarchy Process (AHP) multi-criteria framework with criterion weights derived from published literature confirms the COFL implementation achieves a higher composite score than cloud API deployment under the stated evaluation assumptions. Failure mode and effects analysis (FMEA) is summarized to characterize system reliability under identified failure scenarios.