EXAMINING INVENTORY VALUATION MANAGEMENT AND CONTROL IN MANUFACTURING FIRMS: A CASE STUDY OF COCA-COLA COMPANY IN NDOLA DISTRICT, ZAMBIA

Abstract

The need for holding inventories is invented in any business organisation. The space of inventory will be properly controlled so that the object of carrying or maintaining adequate inventory lauds at minimum cost can be realised. This research is aimed at finding out the effect of inventory valuation management and control in manufacturing firms, using Coca cola Company, Ndola, Zambia as the case study. Effective inventory valuation management and control helps organizations to ensure high productivity and profitability at an optimal inventory level. The motivation behind this study is to enhance understanding of how inventory valuation impacts financial performance and strategic decision-making. The main purpose is to identify the strengths and weaknesses in current inventory practices and recommendations for improvement. The methodology employed a descriptive research design which includes a combination of quantitative analysis and qualitative interviews with key personnel involved. Questionnaires were used as the main tool of data collection. Also a population of 180 was drawn from the male and female workers in Coca cola Company, Ndola District, Zambia after which a sample size of 124 was with the aid of Taro Yamane formula. Also chi- square (*2) formula was used in testing the hypothesis. From this analysis shows that 85% of the respondents agreed that inventory valuation management and control has an effect on the productivity and profitability of manufacturing firms and 10% disagreed with this opinion, while 5% had a different opinion. In conclusion, the study reveal the importance of accurate inventory valuation in optimising operational efficiency and financial performance, with implications for enhancing strategic decision-making process.