The bullwhip effect problem in supply chain networks with limited information sharing is studied. Based on the
dynamic mechanism of inventories in supply chain networks, a supply chain inventory network system state transition model
is presented, which includes uncertainties of demands, information availability and fluency. Then a dynamic inventory control
strategy is proposed and transformed into the optimization problem of linear matrix inequalities. Furthermore, the value of
information sharing in reducing the bullwhip effect is studied. Simulation results show the effectiveness and feasibility of the
proposed method in reducing bullwhip effect and in improving supply chain performance.