A system and method for sizing transponder pools in a dynamic wavelength division multiplexing optical network having selected nodes designated to have a shared transponder pool is presented. The method comprises performing network simulations, generating transponder pool histograms (for each node having a transponder pool) based on the network simulations, performing statistical analysis using the transponder pool histograms to determine probability distribution and distribution parameters for each node and to calculate the horizontal axis location that has a specified distribution tail area, sizing the transponder pools according to the horizontal axis location that has the desired distribution tail area, executing network call blocking simulations to calculate call blocking probabilities, determining whether the call blocking probabilities meet blocking requirements, when the blocking requirements are met, using the sized transponder pools, and when the blocking requirements are not met, adjusting the distribution tail area and repeating sizing, executing and determining steps.