We show how to use polynomial and strongly polynomial capacity scaling
algorithms for the transshipment problem to design a polynomial dual
network simplex pivot rule. Our best pivoting strategy leads to an O(m
2 log n) bound on the number of pivots, where n and m denotes the numb
er of nodes and arcs in the input network. If the demands are integral
and at most B, we also give an O(m(m+ n log n) min(log nB, m log n))-
time implementation of a strategy that requires somewhat more pivots.