A major computational problem that arises in the attempt to solve generalized network and network-related problems is degeneracy. In fact, using primal simplex solution techniques, the number of degenerate pivots performed frequently ranges as high as 90% in large-scale applications. The purpose of this paper is to develop a special set of structural and logical relationships for generalized network problems with positive “gains” that yields a new primal simplex algorithm which exploits degeneracy. The major mathematical differences between this new algorithm and the original simplex method are (1) each basis examined is restricted to have a special topology, (2) the algorithm is finitely convergent without reliance upon “external” techniques such as lexicography or perturbation, and (3) a special screening criterion for nondegenerate basis exchanges is available that allows some of these exchanges to be recognized prior to finding the representation of an incoming arc.
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