Optimal Inventory Strategies for Fresh E-commerce Considering Preservation and Live Marketing Efforts

The freshness of fresh produce will significantly affect consumers' purchasing behavior. This paper investigates the impact of suppliers' optimal inventory strategies related to preservation and live marketing efforts within the framework of live e-commerce. Drawing upon existing literature, this study seeks to integrate the intrinsic characteristics of fresh products with the operational dynamics of live e-commerce to enhance and broaden the analytical scope. It recognizes that demand is influenced not solely by price but also by live marketing efforts and various other factors, resulting in the formulation of a demand function specifically designed for the live broadcast context. The research develops an inventory model for fresh products under online direct selling mode, with the goal of maximizing the total profit for suppliers, addressing the inventory challenges encountered by suppliers. Ultimately, the study identifies the optimal selling price, the optimal level of live marketing efforts, and the optimal order quantity for suppliers. Furthermore, it conducts a numerical simulation to examine relevant parameters that influence demand, replenishment cycle, discussing their respective effects on the supplier's optimal profit. Consequently, the paper provides valuable recommendations regarding the preservation and live marketing strategies for suppliers.