Optimizing LLM Inference: Fluid-Guided Online Scheduling with Memory Constraints

Large language models now serve millions of users daily, with providers incurring costs exceeding 700,000 per day. Each request requires token-by-token inference, making GPU scheduling central to latency, capacity, and cost. The difficulty is endogenous memory growth: generated tokens expand the Key-Value (KV) cache, and overflow can evict in-progress requests and waste prior computation. We formulate inference as a multi-stage online scheduling problem with endogenous memory growth, linear iteration times, and GPU-resident KV-cache constraints. We introduce a fluid model that characterizes equilibrium batch composition, memory requirement, and stability region. Guided by the fluid model, we design WAIT (Waiting for Accumulated Inference Threshold), a threshold-based admission rule for known output lengths, and Nested WAIT, which extends the rule to unknown output lengths by regulating how requests advance across decode-stage segments. Both algorithms approximate the fluid benchmark asymptotically under the stated memory conditions. Nested WAIT uses an additional safety buffer of moderate scale to hedge against memory-overflow-induced evictions under unknown output lengths. In Vidur simulations configured for Llama-2-7B on an A100 GPU, with supplemental real-GPU validation reported in the appendix, the policies enlarge the empirically observed stable operating range relative to widely used baseline algorithms and reduce latency especially in near-overloaded and overloaded regimes.