What IOS are you running?
You've read/seen: https://www.cisco.com/c/en/us/support/docs/switches/catalyst-3850-series-switches/200594-Catalyst-3850-Troubleshooting-Output-dr.html ?
You might try to (further) increase buffers resources allocated to PQ1. However, from the foregoing technote, PQ1 appears to be a "special case", which means we might not be able to tweak it best for our needs. So, another possible approach might be to use the switch "differently", i.e. don't use PQ1 at all. Perhaps use PQ2 for what's now PQ1 and PQ2 or perhaps use PQ2 for PQ1 and place PQ2 into another queue with a large bandwidth allocation.
It's also possible, depending on the nature of your traffic, and the capabilities of the switch, you cannot totally mitigate your drops. In such a case you might then need either additional physical bandwidth and/or "better" network equipment than a 3650.
PS:
Did content of OP change? I recall (?) replying to a posting with a different content.
