A state-dependent policy for call admission and routing in a multi-service circuit-switched network is synthesized. To meet different requirements the objective function is defined as the mean value of reward from the network. Policy iteration is applied to find the optimal control. Assuming link independence the network reward process is decomposed into the set of link reward processes thereby significantly reducing complexity. The approach is implementable for large systems if certain approximations are used. A simulation study shows that the algorithm converges in two iterations, exhibits good traffic efficiency, and provides a flexible tool for performance allocation among services. The approach also constitutes a framework for studying, synthesizing and optimizing other call admission and routing strategies. In particular the results of sensitivity analysis are used to compare the proposed decomposition approach with that developed by F. P. Kelly (1988) for optimization of a load sharing policy in telephone networks
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