Cluster, Route, Escalate: Cascaded Framework for Cost-Aware LLM Serving
Yasmin Moslem, Magdalena Kacmajor, Vasudevan Nedumpozhimana, Ammar Abbas, Solmaz Panahi, David Lynch, Zhuangzhuang Nie, Alexandros Agapitos, Aleksandar Milenovic, Hongmeng Song, Yucheng Shi, Yue Pan, Patricia Buffini, John D. Kelleher
Abstract
Efficient deployment of large language models (LLMs) in production forces a trade-off between accuracy and cost. Operators often default to a single model that is either expensive for easy queries or insufficient for hard ones. To address this challenge, we propose a two-stage cascaded solution. Stage 1 clusters incoming queries and assigns each cluster to its most cost-effective model. The cost budget for this routing process is set by an interpretable hyperparameter, tuned offline. Stage 2 adds a quality estimation (QE) cascade; when an output from Stage 1 is judged low-quality, the query is escalated to a stronger model. This ensures only hard or low-confidence cases reach the expensive models. On the test datasets, the cascaded system retains 97-99% of the strongest model's accuracy while reducing Time Per Output Token (TPOT). It requires only task-correctness labels and adapts to changes in the model pool without manual reconfiguration.
Topics
Classified with taxonomy v2 on Sat, 5 Sept 2026.