4. Once the problem is reduced or removed, the inventory level is reduced until another problem is discovered and identified. 5. Steps 2 through 4 are repeated until the minimum possible level of inventories is achieved.
In this way. reduction of inventory uncovers problems and stimulates the search for practical ways of solving them so continuous improvement is made in eliminating wastes: Reduction of inventory levels also affects processing speed, or the velocity at which a task or unit passes through the system.