Because WIP is a costly asset that must be financed and maintained just as any other asset, the Because WIP is a costly asset that must be financed and maintained just as any other asset, the obvious benefit of a WIP reduction is that total investment is reduced, producing savings in inventory carrying cost. Usually this is achieved by producing a larger number of smaller batches, so that less WIP exists at each step in the process, and the velocities of all units and batches are increased. The EOQ discussion suggests that any savings will be more than offset by the ordering (setup) costs of a larger number of smaller batch. The solution is to set EOQ at a fraction of its former level, and then calculate the reduction in ordering cost needed to solve the EOQ equation. The implementation of the plan the consists of driving setup costs down to that lower level, making the smaller batch size become the Economic Order Quantity. For this reason, much of Just in Time technology deals with reducing the duration and cost of setups.