Erlang Loss Formula

Posted in Operations and Supply Chain Terms, Total Reads: 2926

Definition: Erlang Loss Formula

In 1917 Danish Engineer A K Erlang gave the dimensionless unit Erlang which was used to measure the load on service element like telephone, cable etc. it is also known as Erlang B formula where B stands for blocking. This formula proved to be very helpful in planning the networks for telephone operators as it was easy to know the probability of call loss in circuit.

In relation to operation system the formula is helpful in understanding the probability in queuing system and helps to manage & plan the inventory systems and loss in sales.

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