A method for receiving a packet descriptor associated with a packet and a queue number indicating a queue stored within a memory unit, determining a priority level of the packet and an amount of free memory available in the memory unit. Applying a global drop probability to generate a global drop indicator and applying a queue drop probability to generate a queue drop indicator. The global drop probability is a function of the amount of free memory. The queue drop probability is a function of instantaneous queue depth or drop precedence value. The packet is transmitted whenever the priority level is high. When the priority level is low, the packet is transmitted when both the global drop indicator and the queue drop indicator are a logic low value. When the priority level is low, the packet is not transmitted when either drop indicator is a logic low value.