In a Mixed-Integer Linear Programming (MILP) model for global network design, how are international tariffs and duties typically handled mathematically?

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Answer

They are defined as the ultimate objective function to be maximized.

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They are completely ignored as they are considered "sunk costs."

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They are incorporated into the objective function as variable cost parameters applied to the flow of goods across specific borders.

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They are modeled as binary variables indicating whether a port is open or closed.

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In a Mixed-Integer Linear Programming (MILP) model for global network design, ho...

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