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We have this conversation every year after IU recruitment, so I suggest a search on the topic.
They do not use release figures, nor do they use quota/total. This is because everyone lives in the house from the fall after pledging until graduation (i.e. 3 years if you pledge as a freshman, 2 if you pledge as a sophomore). If you have a bigger house, you will have a larger chapter.
I don't think you can say it "works," because you may have chapters who get their pick of the women, but you have a lot of disappointed PNM's, which I promise you is not good for NPC as a whole.
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