A production management system is configured to dynamically control inventory of a semiconductor product to prevent overstock and stockout. The production management system includes a production planning module including components containing data of demand forecast, and customer order. The production management system further includes a dynamic inventory control module including a dynamic inventory control simulation module and an inventory management system, wherein the inventory management system is configured to record real inventory data, and wherein the dynamic inventory control simulation module includes simulators for target inventory, future inventory, future shipment and semiconductor product production.