Machine failures during production period may impose thousands to millions of dollars to a manufacturing system. In this paper, the impact of machine failures on production lines in a closed-loop supply chain systems is examined. For this purpose, a new method is proposed for scheduling manufacturing workshops in a supply chain systems. The aim is to determine the best production plans in a manufacturing system by considering alternative preventive maintenance programs while machine failures can affect system performance. To solve the model, a hybrid Ant Colony and Simulated Annealing algorithms is developed and the results are compared with branch and bound method. Our findings show that the condition of emerging machine failure affects machines' capacity which yields to lost sale. The impacts of using appropriate preventive maintenance on reducing lost sale is also examined. The results indicate that the proposed method can significantly reduce the level of sale variation in supply chain systems. ensee Growing Science, Canada authors; lic
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