Abstract
In this paper, we propose an adaptive capacity allocation scheme for a dynamic single traffic class scenario in a loss mode environment. The scheme aims to maintain the connection blocking probability within a specified range by dynamically adjusting the allocated capacity. A fluid flow differential equation model is developed to model the changing traffic environment. Using the fluid flow model, Lyapunov Stability theory is used to derive a novel adaptive capacity adjustment scheme which guarantees overall system stability while maintaining the target QoS parameters. Numerical results are given which show that the Lyapunov control based scheme successfully provides the desired QoS requirements and performs better than existing schemes in the literature.