A method and apparatus for an enhanced datagram packet switched computer network is disclosed. The invention processes network datagram packets in network devices as separate flows, based on the source-destination address pair contained in the datagram packet itself. As a result, the network can control and manage each flow of datagrams in a segregated fashion. The processing steps that can be specified for each flow include traffic management, flow control, packet forwarding, access control, and other network management functions. The ability to control network traffic on a per flow basis allows for the efficient handling of a wide range and a large variety of network traffic, as is typical in large-scale computer networks, including video and multimedia type traffic. The amount of buffer resources and bandwidth resources assigned to each flow can be individually controlled by network management. In the dynamic operation of the network, these resources can be varied based on actual network traffic loading and congestion encountered.