Two boats leave North America headed for Asia Pacific loaded with Bobcat machines. One leaves on Wednesday and one two days later. It takes them 10 days to make the trip. The boats port in Sydney Australia. During that time the Aussie dollar value slips in value, at the start of the journey it was .85 to the US dollar, now it is at .72. What is the value of the inventory if you have no demand? Would the purchaser’s cash flow have been impacted differently if they had paid for the inventory when the Aussie dollar was valued higher?
Questions similar to this one have been plaguing a group of us at work for the last week. I feel like I am having a crash course, or at least a refresher in algebra, macroeconomics and operations. AHHH!
Despite the stress and worry I am actually amazed at what a slowdown in the economy is allowing (or forcing) me to learn. Don’t get me wrong, I’d rather see double digit growth for my company and others around the world. However, since that isn’t happening I’m trying to find the silver lining in the work I am doing and the times we are all living in.
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2 comments:
zzzzzzzz...huh? wha? no-no, I'm awake, I swear.
:-)
Thank you for the flashback to Inventory Management and Macroeconomics. I think you just helped me answer the age old question "to MBA or not to MBA"
I think its funny that yesterday the Controller for the region said I think you found your niche -- a blend of Operations and Finance. I wanted to respond with "If you saw my college transcript you may take that statement back!"
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