Business rule extraction using decision tree machine learning techniques: A case study into smart returnable transport items

Decision support systems are becoming increasingly sophisticated (e.g., being machine learning-based), attempting to automate decisions as much as possible. However, it remains challenging to extract meaningful value from large quantities of data while also maintaining transparency in seeking justification for the choices made. Instead of creating methods for increasing the interpretability of black box models, one way forward is to design models that are inherently interpretable in the first place. Rule-based methods can automate decisions with great transparency and accuracy, helping to ensure compliance with regulations and adherence to organizational guidelines. In this paper, we propose an approach that uses a decision tree machine learning classification technique for extracting business rules from IoT-generated data to predict the asset status of Smart Returnable Transport Items (SRTIs). We report on an industrial case study that uses two years of historical data, obtained from an SRTI provider in the Netherlands, to predict the status of smart pallets. We compare the performance with the results obtained by using a support-vector machine (SVM) technique. Our experiments show that our solution is both accurate and flexible in terms of business rule elicitation. The obtained decision trees are human-interpretable, can easily be combined with other decision-making techniques, and provide a prediction accuracy marginally higher than an SVM technique.