Multi-physics thermo-fluid modeling has been extensively used as an approach to understand melt pool dynamics and defect formation as well as optimizing the process-related parameters of laser powder-bed fusion (L-PBF). However, its capabilities for being implemented as a reliable tool for material design, where minor changes in material-related parameters must be accurately captured, is still in question. In the present research, first, a thermo-fluid computational fluid dynamics (CFD) model is developed and validated against experimental data. Considering the predicted material properties of the pure Mg and commercial ZK60 and WE43 Mg alloys, parametric studies are done attempting to elucidate how the difference in some of the material properties, i.e., saturated vapor pressure, viscosity, and solidification range, can influence the melt pool dynamics. It is found that a higher saturated vapor pressure, associated with the ZK60 alloy, leads to a deeper unstable keyhole, increasing the keyhole-induced porosity and evaporation mass loss. Higher viscosity and wider solidification range can increase the non-uniformity of temperature and velocity distribution on the keyhole walls, resulting in increased keyhole instability and formation of defects. Finally, the WE43 alloy showed the best behavior in terms of defect formation and evaporation mass loss, providing theoretical support to the extensive use of this alloy in L-PBF. In summary, this study suggests an approach to investigate the effect of materials-related parameters on L-PBF melting and solidification, which can be extremely helpful for future design of new alloys suitable for L-PBF.