Hierarchies play an important role in information management systems. Hierarchies in MDS provide an easier frontend view for end users, who can then apply changes in hierarchies much more easily.
Hierarchies in MDS come in different types: explicit and derived hierarchies. Explicit hierarchies are kind of ragged hierarchies that are created from a single entity. Derived hierarchies are created from multiple entities based on the relationship between the entities. Explicit hierarchies can be ragged, but derived hierarchies always contain a static number of levels. The following screenshot illustrates examples of derived and explicit hierarchies: