The Multi-Tier (M-Tier) algorithm proposed in [1], has enabled an enhanced correlation between dynamic resource utilization and QoS guarantees. The algorithm favored the delay sensitive applications. Indirectly, this infers that the assignment of priorities practiced in the algorithm is static. In redesigning the algorithm, priority assignments should be able to be implemented dynamically. Thus, enabling an embedded element to provide implementation mobility. This would depend upon the current status of the classified buffers and the tolerance level of the delay sensitive traffic. Integrating control parameters to enable alternation in scheduling priorities is an option to resolve the element of partiality present in the M-Tier algorithm. Thereafter, the proposed algorithm will be denoted as the M-Tier(T) algorithm [2]. The paper proposes a detailed mathematical model for the analysis of dynamic resource reservation algorithms implemented in IP switches. The semi-markov process (SMP) approach utilized provides an accurate performance prediction and representation of resource reservation mechanisms. The algorithm correlates the average packet delay and packet loss ratio parameters to activate the dynamic resource reservation mechanism in a hierarchical manner. The developed models are validated through discrete-event simulation. The performance of the algorithm is studied in terms of average packet delay and network throughput.