An Asynchronous Transfer Mode (ATM) network provides a connection-oriented service by establishing a virtual channel (VC) between a source and destination node. Virtual paths (VPs) facilitate virtual channel allocation by partitioning network resources along pre-calculated routes. This paper proposes a pamework for the allocation of VCs and VPs in an ATM network. Our approach is based on approximating the required reiources of calls and then formulating a multirate loss network model for an ATM

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... network. We propose a decentralized algorithm for adaptively adjusting offered loads to network routes and VP bandwidth assignments. ATLI network. In order to provide multiple gradesof-service, we propose a class-based approach to resource allocation and a method for approximating the iresource requirement of a call. At the connection level, we ,formulate the ATM network as a multirate loss network and apply a generalization of the decentralieed, adaptive routing algorithm for circuit-switched networks introduced by Kelly [5]. Together with a scheme for adjusting VP bandwidth, our approiLch allows fast connection set-up and yet aims to achieve low call blocking probability.