This paper presents an application of a improved branch exchange (IBE) algorithm with a tie branch power (TBP) flow equation to solve the Optimal Routing problem for operation of a radial Power system including power distribution system. The main objective of the Optimal Routing problem usually is to minimize the network real power loss and to improve the voltage profile in the network. The new BE algorithm adopts newly designed methods which are composed by decision method of maximum loss reduction and new index of loss exchange in loop network Thus, the proposed algorithm in this paper can search the optimal topological structures of distribution feeders by changing the open/closed states of the sectionalizing and tie switches. The proposed algorithm has been evaluated with the practical IEEE 32, 69 bus test systems and KEPCO 148 bus test system to show favorable performance gained.