Sand production is a complex phenomenon caused by the erosion of borehole walls during the extraction of hydrocarbons. In this paper, the sanding process in a typical Thick-Walled Hollow Cylinder (TWHC) test is numerically simulated. The main objective of the study is to model the particulate mechanism of sand production in granular assemblies with different bonding conditions and examine the effects of parameters such as stress level and cavity size on the sanding model. Due to the discrete nature of sand particles, the Discrete Element Method (DEM) is chosen to model solid particles, and the Lattice-Boltzmann Method (LBM) is implemented to simulate fluid flow through the solid particulate medium. A computer program is developed using the Immersed Moving Boundary (IMB) approach to couple the two methods and model fluid–solid interactions. After the program is validated, the simulations were conducted on 2D models representing cross-sections of TWHC samples under radial fluid flow. The results show that the developed program is able to capture complicated stages of sand production already observed in experiments. The program also proves to be a promising tool in the parametric study of sand production. It successfully simulates different aspects of the sanding phenomenon, including the scale effect, the extension of failure zones in samples under incremental stress, and the stress relaxation during rapid particle erosion.