<abstract> <p>Machine breakdown usually implies unexpected physical damage to machinery due to any reason which requires fixing or replacement to continue the process. This article presentsan investigation of a sustainable model with stochastic machine breakdown. To reduce the risk of disruption,a smart manufacturing system is used. Considering the environmental issues faced by people,the model is developed under a circular economy through end-of-life treatment to recapture the value of the product,labor and resources. The used buyback products are collected,out of which items in good condition are remanufactured and sold in another market while the rest are salvaged. As the production process is not perfectly reliable,the serviceable products go through an automated inspection process,and imperfect items are reworked. A mathematical model is developed for deterioration of items to analyze the optimal replenishment policies,and the results have been illustrated with numerical verification. Based on the analysis,some managerial insights have been provided for decision-makers.</p> </abstract>