Description: This project focuses on the development of a general framework for performing real-time resource allocation for network management and control functions in the context of wired and wireless networks. The framework that is proposed for this research is a hybrid modeling paradigm based on Stochastic Fluid Models (SFM), which have recently been shown to be especially useful for analyzing various kinds of high-speed networks. Using this modeling framework a new approach for network management is proposed which is based on Infinitesimal Perturbation Analysis (IPA). This approach is computationally efficient; It is based on estimating the gradient of the performance measure of interest (e.g., packet loss rate) with respect to control parameters (e.g., buffer thresholds) and subsequently employ them in standard stochastic approximation algorithms to determine the optimal parameter setting.