The design and management of a supply chain system have already attracted many attentions among process system engineering researchers recently. One of these areas is the analysis of logistic management for a supply chain using the system control theory. A supply chain can be viewed as a discrete system with lead times and operating constraints. In this paper, we use material and information balances to design a discrete dynamic model for a batch ordering supply chain system. The explicit transfer function model of the closed loop response is obtained by z-transform. The entire chain can be modeled by connecting these transfer functions in to a block diagram. In order to derive the z-transform model of the batch ordering system, we first use the signal processing technique. The model proves to be a very powerful tool that reveals the dynamics characteristic of the system. Moreover, the use of the dynamic process control theory allows us to design the inventory level control strategies and analyze its dynamics behaviors. Based on the transfer functions in z-transform, it becomes possible to explore the stability of a supply chain. Furthermore, we can show the effective reduction of the bullwhip effect and improvement of customer satisfaction for a batch ordering supply chain by implementing a proportional integral control or a cascade control.