R seminar-Thematic assignment

876123 Appiah Loretta

877991 Husein Ali Fathimah
877569 Kumari Anjulee
877408 Piciacchia Maria Elisa
875886 Pizzadili Cristina
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1. The Problem
Most of the parking metres in San Francisco have an high evasion rate, it is necessary to find a way to solve or to
mitigate the problem.
It is possible to divide the parking area in clusters and to assign to each cluster a patrol that can monitor all the
parking metres within the group.

Objective
Creations of cluster with the aim of profit maximization, having this
information:
the annual cost of a patrol is 45000 €
the revenues and evasion’s value are known for each parking metre
if a patrol is monitoring a specific parking metre the value of the evasion
is going to decrease by 10%

Constraints
Two main constraints must be respected creating the cluster :
The area monitored by one patrol must not exceed 0.8 km2
Each patrol can monitor a maximum number of 300 parking metres
PostID plotted in San Francisco map
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In order to find the solution, a grid

2. The solution
with all the data available was
identified, mapping all the parking
implemented meters according the latitude and
longitude. All the data points in each
grid are already plotted according to
the first constraint (Single area
monitored of about 0,8 km2)
However to build the cluster each grid must also fulfil the second constraint
(maximum 300 Post ID in a cluster).

Every single time that the cluster obtained didn’t respect the constraints, we re-clustered the
data according to them, sub-dividing the area until the second constraint is respected. The two
figures below show an example of how we proceed to re-cluster.

OUTCOME:
29 clusters
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3. The results

Clusters’ Actual Revenue

For each cluster identified, we calculated the
actual revenue as the subtraction between
the total revenues and the loss due to the
evasion

Profitability
To check the profitability of each cluster, we
deducted the annual cost of the single patrol ANNUAL PROFIT
(45.000$/year) from the actual revenue just
obtained all the 29 cluster are profitable SFMTA spends 1,3M for fighting
evasion, enrolling 29 patrols,
receiving about 20,3M in a year
Investment
In order to understand the amount to invest, it
is necessary to estimate the number of patrols
needed. Since from the previous step, we found
out that all the clusters(29) are considered
profitable, the investment required is:
45.000$ * #Patrols(29)
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4. Other recommendations
In order to see which are the most profitable clusters, an ABC analysis was performed basing on profit:

CLASS A
Class A Cluster name Profit €/year
34% of the cluster (10 clusters) accounts for approximately 61%
Cluster 10 1789765.2
of the annual profits
Cluster 9 1727840.1
Cluster 8 1485527.4
Class B Cluster 27 1326398.5
41% of the cluster (12 clusters) accounts for approximately 32% Cluster 28 1178282.3
of the annual profits Cluster 23 1131071.4
Cluster 22 1034220.2
Cluster 26 1003828.7
Class C
Cluster 13 916783.8
25% of the cluster (7 clusters) accounts for approximately 7%
Cluster 14 906631.9
of the annual profits
Note: each cluster is positioned in a different part
of San Francisco map

In class A there are10 clusters, it is recommended to focus on these areas in order to avoid evasion. Assigning a patrol
in one area is just a way to mitigate the problem, in fact thanks to the patrol the evasion is going to decrease by 10%.
Therefore it is recommended to deeply analyse the causes of the evasion, especially in these 10 most profitable
clusters, in order to find different way to eliminate the problem.
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