Average gadget price: $100

Estimated sales for December: 10,000 units

Warehousing costs: $1 per unit per month for Strategy A; and $0.5 for Strategy B.

Inventory holding costs: 2% of gadget price per month for Strategy A; 1% for Strategy B.

Transportation costs: $5 per unit for Strategy A and $10 for Strategy B (due to expedited shipping).

Order processing, information systems, and administrative costs are assumed constant at $15,000 for both strategies.

Which strategy will you recommend for? What supplemental factors (in addition to total cost) should be analyzed?