At first glance building a category structure seems simple enough, but it will quickly become obvious that it is actually a key issue for any web site with significant depth of content. In many cases, managing the hierarchy of what belongs where becomes one of the major obstacles to a site's usability and can require seemingly disproportionate amounts of manpower.
To most, a category structure resembles a folder tree, as on your computer. Each folder can have contents of its own and each folder has a parent. This is similar to the visualization of a tree branch, hence the tree part of the term. While this might work well for organizing your files, it can be somewhat limiting as it provides only a single path to any given folder. Information and products frequently have more complex associations. It can be useful and in some cases very necessary to provide a more flexible means of defining the actual location of a given branch on a tree. Allow us to to illustrate with the following two case studies.
In either case, a hundred or more inventory items would make this a monumental task to keep track of and to update. In case #1 the only requirement is that items be in a logical place so they can be found, regardless of what path you took to get there. Duplicating content in order to place items in more than one path can become a nightmare to manage over time.
Case #2 is a bit more subtle as it has more to do with how other items can be associated with a given document or item record in addition to it's location. But with a little planning, both can be handled in a fairly straight forward manor.