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As per my knowledge there are certain reasons /requirements purpose, we are going to build hierarchy.
1. perform aggregate navigation,
2. configure level-based measure calculations,
3. users from Dashboard and Answers to drill down from one parent to a child level.
In future if you want use time series function in project , you have to build time hierarchy in rpd.
Time Series function like (Todate,Ago,Period Rolling)..
Note: Hierarchy creation for every dimension is best practice .
Hope this help's