The　bullwhip　effect　problem　is　one　of　the　most　important　issues　in　supply　chain　management.　Limited　information　sharing　increases　the　difficulty　of　reducing　the　bullwhip　effect　and　leads　to　inefficient　supply　chain　management.　The　purpose　of　this　paper　is　to　explore　new　ways　to　reduce　the　bullwhip　effect　in　supply　chain　systems　that　face　uncertainties　with　respect　to　information　sharing.　We　first　present　a　supply　chain　state　transition　model,　based　on　which　we　explore　the　endogenous　mechanism　of　bullwhip　effect,　especially　those　related　to　impacts　from　limited　information　sharing.　Then　we　propose　a　novel　inventory　control　method　and　study　the　corresponding　control　optimization　problem,　with　the　aim　of　reducing　inventory　volatility　in　supply　chains.　Both　quantitative　analysis　and　simulation　study　are　conducted.　Simulation　results　show　the　effectiveness　and　flexibility　of　our　proposed　method　in　reducing　bullwhip　effect　and　in　improving　supply　chain　performance,　even　under　conditions　of　limited　information　sharing.　©　2012　Elsevier　Inc.