This paper presents an efficient algorithm for loss reduction of distribution system by automatic sectionalizing switch operation in large scale distribution systems of radial type. Simulated Annealing algorithm among optimization techniques can avoid escape from local minima by accepting improvements in cost, but the use of this algorithm is also responsible for an excessive computation time requirement. To overcome this major limitation of Simulated Annealing algorithm, we may use advanced Simulated Annealing algorithm. All constaints are divided into two constraint group by using perturbation mechanism and penalty factor, so all trail solutions are feasible. The polynomial-time cooling schedule is used which is based on the statistics calculation during the search. This approaches results in saving CPU time. Numerical examples demonstrate the validity and effectiveness of the proposed methodology.