Shortest path calculations for a large-scale network have to be performed using a decomposition techniqre, since the calculations require large memory size which increases by the square of the number of vertices in the network. Also, the calculation time increases by the cube of the number of vertices in the network. In the decomposition technique,the network is broken into a number of smaller size subnetworks for each of which shortest paths are computed. A union of the solutions provides the solution of the original network. In all of the decomposition algirithms developed up to now, boundary vertices which divide all the subnetworks have to be included in computing shortest paths for each subnetwork. In this paper, an improved algorithm is developed to reduce the number of boundary vertices to be engaged. In the algorithm, only those boundary vertices that are directly connected to the subnetwork are engaged. The algorithm is suitable for an application to real time computation using a parallel processor system which consists of a number of micro-computers or prcessors. The algorithm has been applied to a 39- vertex network and a 232-vertex network. The results show that it is efficient and has better performance than any other algorithms. A parallel processor system has been built employing an MZ-80 micro-computer and two Z-80 microprocessor kits. The former is used as a master processor and the latter as slave processors. The algorithm is embedded into the system and proven effective for real-time shortest path computations.