# Erlang B Formula

This article covers meaning & overview of Erlang B Formula from operations perspective.

Published by MBA Skool Team in Operations and Supply Chain Terms Last Updated: March 27, 2024Read time:

## What is Erlang B Formula?

The Erlang B formula that is also known as Erlang loss formula calculates the blocking probability of a service system generally telephone networks. For example, in case of a telephone network, the blocking probability is the probability of a call being lost due to all attending servers being busy and there is no buffer space for waiting or queuing the calls.

The formula is given as follows,

where,

Pb = Probability of blocking

E = the total amount of traffic in Erlangs given by λh, where λ= rate of arrival of new calls & h= average call time

m = number of server or resources in the service system

and it is assumed that the calls received follow a Poisson distribution.

The Erlang B formula is mostly used to calculate the minimum number of servers of resources that would be required to achieve a required probability of service delivery during peak times.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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