what forward method in document types

can any one explain what forward method in document types direct and hierarchy?

Buyer A is creating a PO &

Buyer A is creating a PO & has a approval limit of $100 His next manager / approver is B & he has a approval limit of $1000 C is the manager/approver of B & he has a approval limit of $10000 Now suppose A create a PO of $2000 Neither A & B can approve the document . C needs to approve it. Now the document can move from A to B to C (hierarchy) Or can directly move from A to C (direct)