Volume-12, Issue-8, August 2026
1. House Price Prediction in Nanjing Based on Machine Learning and SHAP Interpretability
Authors: Yang Zaibin; Cui Xinxin
Keywords: House price prediction; Machine learning
Page No: 01-19
Abstract
Accurate house price prediction is of great significance for homebuyers, developers, and policymakers, yet the complexity and non-linearity of housing markets pose substantial challenges to traditional linear models. This study addresses the dual goals of high predictive accuracy and high interpretability by systematically comparing five regression models—linear regression, random forest, XGBoost, LightGBM, and multilayer perceptron (MLP)—on a large-scale second-hand housing dataset from Nanjing, China. Model performance is evaluated using MAE, RMSE, and R². Results show that ensemble tree models significantly outperform linear regression and MLP, with LightGBM and XGBoost achieving the lowest MAE (6,200 RMB/m²) and RMSE (8,800 RMB/m²), and LightGBM attaining the highest R² (0.92). We further employ SHAP (SHapley Additive exPlanations) to open the "black box" of the optimal LightGBM model. Global feature importance reveals that house age, subway distance, and decoration condition are the three most influential drivers of Nanjing house prices. SHAP summary plots demonstrate that newer houses, closer subway proximity, and better decoration consistently raise prices, while area exhibits a non-monotonic effect—small units command higher unit prices under total-price constraints, whereas very large luxury properties show diminishing marginal value. Prediction diagnostics confirm robust performance in the mainstream price range (15,000–35,000 RMB/m²), though extreme high-end properties remain harder to predict due to unobserved idiosyncratic factors. This study not only provides a high-performance predictive tool for the Nanjing market but also offers transparent, actionable insights into the underlying price-formation mechanism. The integrated framework of machine learning plus SHAP interpretability is readily generalisable to other cities and real-estate contexts, supporting evidence-based decision-making and policy design.
Keywords: House price prediction; Machine learning
References
[1] Breiman, L. (2001). Random forests. Machine Learning, *45*(1), 5-32.
[2] Chen, T., & Guestrin, C. (2016). XGBoost: A scalable tree boosting system. In Proceedings of the 22nd ACM SIGKDD International Conference on Knowledge Discovery and Data Mining (pp. 785-794).
[3] Comparative analysis of advanced models for predicting housing prices: A review. (2025). Journal of Risk and Financial Management, *18*(2), 65.
[4] Comparative analysis of ensemble and linear machine learning models in the task of house price prediction. (2024). IEEE Access, *12*, 145678.
[5] Explainable housing price prediction with determinant analysis. (2023). International Journal of Housing Markets and Analysis, *16*(5), 1021-1045.
[6] Explaining drivers of housing prices with nonlinear hedonic regressions. (2025). Journal of Housing Economics, *65*, 102034.
[7] Friedman, J. H. (2001). Greedy function approximation: A gradient boosting machine. Annals of Statistics, *29*(5), 1189-1232.
[8] Hu, L., He, S., Han, Z., et al. (2023). Incorporating neighborhoods with explainable artificial intelligence for modeling fine-scale housing prices. Applied Geography, *157*, 103020.
[9] Integrating machine learning and hedonic regression for housing price prediction: A systematic international review. (2025). Economic Modelling, *138*, 106812.
[10] Ke, G., Meng, Q., Finley, T., Wang, T., Chen, W., Ma, W., ... & Liu, T.-Y. (2017). LightGBM: A highly efficient gradient boosting decision tree. In Advances in Neural Information Processing Systems 30 (NIPS 2017) (pp. 3146-3154).
[11] Lundberg, S. M., & Lee, S.-I. (2017). A unified approach to interpreting model predictions. In Advances in Neural Information Processing Systems 30 (NIPS 2017) (pp. 4765-4774).
[12] Mangal, A., & Jain, R. (2025). Toward transparent and accurate housing price appraisal: Hedonic price models versus machine learning algorithms. Financial Innovation, *11*, 141.
[13] Maselli, G., & Nesticò, A. (2025). Machine learning algorithms and explainable artificial intelligence for property valuation. Buildings, *15*(15), 2678.
[14] Pita, R. P., de Carvalho, A. R., & Barbosa, R. M. (2026). A systematic review of the use of machine learning in the prediction of house pricing. Journal of Housing Economics, *62*, 101987.
[15] Ribeiro, M. T., Singh, S., & Guestrin, C. (2016). "Why should I trust you?": Explaining the predictions of any classifier. In Proceedings of the 22nd ACM SIGKDD International Conference on Knowledge Discovery and Data Mining (pp. 1135-1144).
[16] Rosen, S. (1974). Hedonic prices and implicit markets: Product differentiation in pure competition. Journal of Political Economy, *82*(1), 34-55.
[17] Saiu, V., & Mocci, M. (2024). Explainable AI for urban real-estate prediction: A machine-learning framework for urban decision support. Sustainability, *16*(12), 5120.
[18] Selim, H. (2009). Determinants of house prices in Turkey: Hedonic regression versus artificial neural network. Expert Systems with Applications, *36*(2), 2843-2852.
[19] Wang, Y., & Li, Z. (2025). Exploring housing price dynamics in sustainable cities through a cooperated big data driven machine learning method: Case study on a typical city in China. Sustainable Cities and Society, *110*, 105789.
[20] Ye, Y. (2022). An explainable model for the mass appraisal of residences: The application of tree-based machine learning algorithms and interpretation of value determinants. Cities, *128*, 103803.
2. Evaluation and Validation of a Developed Hybrid Models for ERP System Usability and Its Influence on User Satisfaction in Enterprises
Authors: Folorunsho Olanrewaju; Prof. Akinnuli B.O; Prof. Awopetu O.O
Keywords: Enterprise Resource Planning, ERP Effectiveness, Inverse Variance Weighting, Tabu Search, Machine Learning, Key Performance Indicators.
Page No: 20-29
Abstract
Enterprise Resource Planning (ERP) systems have become indispensable for integrating organizational processes and improving operational efficiency. However, evaluating ERP system effectiveness remains challenging because conventional evaluation methods often rely on subjective assessment techniques and fail to capture the complex relationships among multiple organizational and operational performance indicators. This study proposes a hybrid framework that integrates Inverse Variance Weighting (IVW), Tabu Search Algorithm (TSA), and supervised Machine Learning (ML) models for objective ERP effectiveness evaluation. Operational and organizational Key Performance Indicators (KPIs), including throughput, lead time, defect rate, machine utilization, system uptime, response time, employee productivity, order fulfillment rate, supply chain responsiveness, customer satisfaction, cost efficiency, and return on investment, were employed to construct a composite ERP effectiveness index. The IVW technique objectively assigned KPI weights based on statistical stability, while Tabu Search optimized KPI selection and feature combinations. Linear Regression, Support Vector Regression, and Random Forest Regression models were subsequently trained to predict ERP effectiveness. Model performance was evaluated using Mean Absolute Error (MAE), Root Mean Square Error (RMSE), coefficient of determination (R²), and five-fold cross-validation. The proposed framework provides an objective, scalable, and intelligent decision-support mechanism capable of improving ERP performance evaluation in manufacturing environments. The study contributes a novel hybrid optimization and machine learning framework that enhances predictive accuracy while reducing the subjectivity associated with conventional ERP evaluation techniques.
Keywords: Enterprise Resource Planning, ERP Effectiveness, Inverse Variance Weighting, Tabu Search, Machine Learning, Key Performance Indicators.
References
[1] Alsharari, N. M. (2023). Enterprise resource planning systems and organizational performance: A review of recent developments.
[2] Alzubaidi, L., Zhang, J., Humaidi, A. J., et al. (2023). Review of machine learning: Concepts, applications, and challenges. Journal of Big Data, *10*(1), 1-74.
[3] Ashok, M. (2024a). Machine learning approaches for demand forecasting in supply chain management.
[4] Ashok, M. (2024b). Reinforcement learning for inventory optimization in enterprise systems.
[5] Balić, J., et al. (2022). Digital manufacturing and ERP data acquisition for industrial analytics.
[6] Cabello-Solorzano, D., et al. (2023). Data preprocessing techniques for industrial machine learning applications.
[7] Chen, X., Zhang, Y., & Wang, H. (2021). Optimization of enterprise resource planning workflows using genetic algorithms and particle swarm optimization.
[8] Dachepalli, R. (2025). Reinforcement learning framework for dynamic resource allocation in enterprise resource planning systems.
[9] Dubey, R., Gunasekaran, A., Childe, S. J., et al. (2022). Big data analytics and enterprise resource planning performance: A structural equation modeling approach.
[10] Faveto, G., et al. (2024). Key performance indicators for warehouse systems: A systematic review.
[11] Ghodake, P., et al. (2024). Feature scaling techniques for machine learning-based industrial applications.
[12] Glover, F. (1986). Future paths for integer programming and links to artificial intelligence. Computers & Operations Research, *13*(5), 533-549.
[13] Glover, F. (1989). Tabu search—Part I. INFORMS Journal on Computing, *1*(3), 190-206.
[14] Hatefi, S. M. (2023). Objective weighting methods in multi-criteria decision-making: A comparative review.
[15] Ismail-Fawaz, A., et al. (2023). Sensitivity analysis methods for machine learning prediction models.
[16] Jawad, Z. N., & Balázs, V. (2024). Machine learning-driven optimization of enterprise resource planning (ERP) systems: A comprehensive review. Beni-Suef University Journal of Basic and Applied Sciences, *13*.
[17] Kumar, R., & Singh, P. (2022). Hybrid AHP–TOPSIS framework for enterprise resource planning system evaluation.
[18] Marín-Martínez, F., & Sánchez-Meca, J. (2009). Weighting by inverse variance or by sample size in meta-analysis.
[19] Martínez-Caro, E., et al. (2023). Predictive analytics and automation in enterprise resource planning systems: A systematic review.
[20] Nabi, M., et al. (2024). Machine learning-based disruption prediction for resilient supply chain management.
[21] Qureshi, M. A. (2022). Critical success factors for enterprise resource planning implementation in sustainable supply chains.
[22] Rahman, M., & Islam, M. (2023). Predicting enterprise resource planning project success using machine learning techniques.
[23] Tortorella, G. L., et al. (2022). Industry 4.0 technologies and enterprise resource planning integration: A systematic review.
[24] Zakaria, N., et al. (2024). Machine learning applications in enterprise human capital management.
[25] Zhao, Y., et al. (2023). Reinforcement learning for enterprise resource planning process optimization.
3. Laboratory Validation of a Low-Cost Embedded Computer Vision System for Automated Defect Detection in Beech Sawn Timber
Authors: Sorin Eugen Popa; Roxana Margareta Grigore
Keywords: wood defect detection; embedded computer vision; on-sensor AI; Random Forest; Technology Readiness Level (TRL4); beech sawn timber; digital twin; edge artificial intelligence; Industry 4.0; smart sawmill.
Page No: 30-43
Abstract
The digital transformation of the wood-processing industry increasingly relies on computer vision, artificial intelligence (AI), and embedded sensing technologies to automate timber quality assessment. This study presents the laboratory validation (TRL4) of a low-cost embedded computer-vision demonstrator for automated surface-defect detection in beech (Fagus sylvatica) sawn timber, developed as the first operational module of the SMARTWOOD-AI technology-transfer platform. The system integrates a Raspberry Pi 4 single-board computer with a Sony IMX500 intelligent camera and employs an interpretable computer-vision pipeline based on 21 handcrafted colour (HSV), texture (Gray-Level Co-occurrence Matrix and Local Binary Patterns), and edge-density (Canny) features classified using a Random Forest algorithm. A dataset comprising 24 beech boards (192 labelled image regions) was evaluated using a board-level train/validation partitioning strategy to prevent data leakage. The classifier achieved an average accuracy of 88.2% (±7.1%) during five-fold cross-validation and 82.5% accuracy on an independent validation set, with high sensitivity for defect detection (recall = 0.93, F1-score = 0.88). The results demonstrate the technical feasibility of the proposed embedded inspection architecture and establish a reproducible experimental baseline for future integration of deep-learning models, digital twins, and intelligent cutting optimisation within the SMARTWOOD-AI platform.
Keywords: wood defect detection; embedded computer vision; on-sensor AI; Random Forest; Technology Readiness Level (TRL4); beech sawn timber; digital twin; edge artificial intelligence; Industry 4.0; smart sawmill.
References
[1] An, H., Liang, Z., Qin, M., Huang, Y., Xiong, F., & Zeng, G. (2024). Wood defect detection based on the CWB-YOLOv8 algorithm. Journal of Wood Science, *70*(1), Article 26. https://doi.org/10.1186/s10086-024-02139-z
[2] Capogrosso, L., Bonazzi, P., Hoxhaj, L., & Magno, M. (2026). Exploiting in-sensor computing for energy-efficient earth observation.
[3] Casas, G. G., Ismail, Z. H., & Leite, H. G. (2026). Computer vision, machine learning, and deep learning for wood and timber products: A Scopus-based bibliometric and systematic mapping review (1983–2026, early access). Forests, *17*(1), Article 112. https://www.mdpi.com/1999-4907/17/1/112
[4] Chabanet, S., Bril El-Haouzi, H., Morin, M., Gaudreault, J., & Thomas, P. (2023). Toward digital twins for sawmill production planning and control: Benefits, opportunities, and challenges. International Journal of Production Research, *61*(7), 2190-2213. https://doi.org/10.1080/00207543.2022.2068086
[5] Chabanet, S., El Haouzi, H., & Thomas, P. (2023). Toward a sawmill digital shadow based on coupled simulation and supervised learning models. In Proceedings (pp. 59-70).
[6] Deniz, M., Bogrekci, I., & Demircioglu, P. (2025). Real-time detection of hole-type defects on industrial components using Raspberry Pi 5. Applied System Innovation, *8*(4), Article 89. https://www.mdpi.com/2571-5577/8/4/89
[7] Fan, C., Zhuang, Z., Liu, Y., Yang, Y., Zhou, H., & Wang, X. (2024). Bilateral defect cutting strategy for sawn timber based on artificial intelligence defect detection model. Sensors, *24*(20), Article 6697. https://www.mdpi.com/1424-8220/24/20/6697
[8] Fredriksson, M. (2015). Optimizing sawing of boards for furniture production using CT log scanning. Journal of Wood Science, *61*(5), 474-480. https://doi.org/10.1007/s10086-015-1500-0
[9] Gao, M., Qi, D., Mu, H., & Chen, J. (2021). A transfer residual neural network based on ResNet-34 for detection of wood knot defects. Forests, *12*(2), Article 212. https://www.mdpi.com/1999-4907/12/2/212
[10] Han, S., Jiang, X., & Wu, Z. (2023). An improved YOLOv5 algorithm for wood defect detection based on attention. IEEE Access, *11*, 71800-71810. https://doi.org/10.1109/ACCESS.2023.3293864
[11] He, T., Liu, Y., Xu, C., Zhou, X., Hu, Z., & Fan, J. (2019). A fully convolutional neural network for wood defect location and identification. IEEE Access, *7*, 123453-123462. https://doi.org/10.1109/ACCESS.2019.2937461
[12] He, T., Liu, Y., Yu, Y., Zhao, Q., & Hu, Z. (2020). Application of deep convolutional neural network on feature extraction and detection of wood defects. Measurement, *152*, Article 107357. https://doi.org/10.1016/j.measurement.2019.107357
[13] Hittawe, M. M., Sidibé, D., & Mériaudeau, F. (2015). A machine vision based approach for timber knots detection. In The International Conference on Quality Control by Artificial Vision 2015. SPIE.
[14] Hu, C., Min, X., Yun, H., Wang, T., & Zhang, S. (2011). Automatic detection of sound knots and loose knots on sugi using gray level co-occurrence matrix parameters. Annals of Forest Science, *68*(6), 1077. https://doi.org/10.1007/s13595-011-0123-x
[15] Hu, J., Song, W., Zhang, W., Zhao, Y., & Yilmaz, A. (2019). Deep learning for use in lumber classification tasks. Wood Science and Technology, *53*(2), 505-517. https://doi.org/10.1007/s00226-019-01086-z
[16] Hwang, S.-W., Lee, T., Kim, H., Chung, H., Choi, J. G., & Yeo, H. (2021). Classification of wood knots using artificial neural networks with texture and local feature-based image descriptors. Holzforschung, *76*(1), 1-13. https://doi.org/10.1515/hf-2021-0051
[17] Ji, M., Zhang, W., Diao, X., Wang, G., & Miao, H. (2023). Intelligent automation manufacturing for Betula solid timber based on machine vision detection and optimization grading system applied to building materials. Forests, *14*(7), Article 1510. https://www.mdpi.com/1999-4907/14/7/1510
[18] Ji, M., Zhang, W., Han, J.-k., Miao, H., Diao, X.-l., & Wang, G.-f. (2024). A deep learning-based algorithm for online detection of small target defects in large-size sawn timber. Industrial Crops and Products, *222*, Article 119671. https://doi.org/10.1016/j.indcrop.2024.119671
[19] Kamal, K., Qayyum, R., Mathavan, S., & Zafar, T. (2017). Wood defects classification using laws texture energy measures and supervised learning approach. Advanced Engineering Informatics, *34*, 125-135. https://doi.org/10.1016/j.aei.2017.09.007
[20] Kılıç, K., Kılıç, K., Doğru, İ., & Özcan, U. (2025). WD Detector: Deep learning-based hybrid sensor design for wood defect detection. European Journal of Wood and Wood Products, *83*. https://doi.org/10.1007/s00107-025-02211-5
[21] Li, R., Zhong, S., & Yang, X. (2025). Wood panel defect detection based on improved YOLOv8n. BioResources, *20*, 2556-2573. https://doi.org/10.15376/biores.20.2.2556-2573
[22] Lin, X., et al. (2025). WDNET-YOLO: Enhanced deep learning for structural timber defect detection to improve building safety and reliability. Buildings, *15*(13), Article 2281. https://www.mdpi.com/2075-5309/15/13/2281
[23] Lukovic, M., et al. (2024). Probing the complexity of wood with computer vision: From pixels to properties. Journal of The Royal Society Interface, *21*(213). https://doi.org/10.1098/rsif.2023.0492
[24] Nasir, V., Rahimi, S., Mohammadpanah, A., Hansen, E., & Sassani, F. (2024). Intelligent lumber production (Sawmill 4.0): Opportunities, challenges, and pathways to adoption. In M.-R. Alam & M. Fathi (Eds.), Integrated systems: Data driven engineering (pp. 213-231). Springer Nature Switzerland.
[25] Okano, M. T., Lopes, W. A. C., Ruggero, S. M., Vendrametto, O., & Fernandes, J. C. L. (2025). Edge AI for industrial visual inspection: YOLOv8-based visual conformity detection using Raspberry Pi. Algorithms, *18*(8), Article 510. https://www.mdpi.com/1999-4893/18/8/510
[26] Ozkan, M., Ozcan, C., & Gökmen, S. (2025). Deep learning based defect detection and quality classification on lamella pieces used in solid wood panel production. Operations Research Forum, *6*. https://doi.org/10.1007/s43069-025-00534-w
[27] Popa, S. E., Puiu, P. G., Andrioaia, D. A., Grigore, R. M., & Avădanei, R. L. (2026). Indirect estimation of absorbed infrared LED radiant power using contactless thermal sensing. Sensors, *26*(13), Article 4055. https://www.mdpi.com/1424-8220/26/13/4055
[28] Urbonas, A., Raudonis, V., Maskeliūnas, R., & Damaševičius, R. (2019). Automated identification of wood veneer surface defects using faster region-based convolutional neural network with data augmentation and transfer learning. Applied Sciences, *9*(22), Article 4898. https://www.mdpi.com/2076-3417/9/22/4898
[29] Wang, B., Wang, R., Chen, Y., Yang, C., Teng, X., & Sun, P. (2025). FDD-YOLO: A novel detection model for detecting surface defects in wood. Forests, *16*(2), Article 308. https://www.mdpi.com/1999-4907/16/2/308
[30] Wang, R., Chen, Y., Liang, F., Wang, B., Mou, X., & Zhang, G. (2024). BPN-YOLO: A novel method for wood defect detection based on YOLOv7. Forests, *15*(7), Article 1096. https://www.mdpi.com/1999-4907/15/7/1096
[31] Wang, R., Liang, F., Wang, B., Zhang, G., Chen, Y., & Mou, X. (2024). An efficient and accurate surface defect detection method for wood based on improved YOLOv8. Forests, *15*(7), Article 1176. https://www.mdpi.com/1999-4907/15/7/1176
[32] Wu, L., et al. (2026). A lumber surface defect detection network integrating deformable convolution and multi-scale attention. Forests, *17*(7), Article 839. https://www.mdpi.com/1999-4907/17/7/839
[33] Xi, H., Wang, R., Liang, F., Chen, Y., Zhang, G., & Wang, B. (2024). SiM-YOLO: A wood surface defect detection method based on the improved YOLOv8. Coatings, *14*(8), Article 1001. https://www.mdpi.com/2079-6412/14/8/1001.
📚 Browse More Issues
Explore our complete archive of published research articles and studies.
View All Issues📝 Submit Your Research
Contribute to our journal by submitting your original research for publication.
Submit Article