RED maintains a moving average of the queue length to manage congestion. If this moving average of the queue length lies between a minimum threshold value and a maximum threshold value, then the packet is either marked or dropped with a probability. If the moving average of the queue length is greater than or equal to the maximum threshold then the packet is dropped. Even though, it tries to avoid global synchronization and has the ability to accommodate transient bursts, in order to be efficient RED must have sufficient buffer spaces and must be correctly parameterized. In contrast to RED, BLUE algorithm uses packet loss and link utilization to manage congestion.
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