The dynamic hierarchy, which is a generalization of the centralized, tree structured network, is introduced in this paper. First, a queueing network model of the dynamic hierarchy is formulated. Following the derivation of a network performance measure, probabilistic and heuristic assignment strategies are created. These strategies are compared through the use of analysis of variance procedures and preferred strategies are selected. It is found that a relatively simple heuristic strategy produces capacity assignments whose quality is comparable to that of the preferred probabilistic strategy
