In modern times, production management must quickly respond to the fluctuations in the demand for production materials by production equipment oriented to different orders. This calls for a reasonable plan for production management. Based on Markov model, this paper explores the demand prediction of production materials, and investigates the simulation of production management. Firstly, the grey system model and the Markov chain model were combined into a hybrid prediction model for the dynamic and time-varying demand for production materials in the production process. Through dynamic scenario analysis, the authors explored the formulation of production management and control strategies under multiple uncertain demands for production materials, and gave the specific analysis process. Multiple performance indices were considered synthetically, the optimization objectives of production control simulation were given under the multiple uncertain demands for production materials, and a solution was put forward for the production control problem. The simulation results verify the effectiveness of the proposed model.