In drupal there are few modules like https://www.drupal.org/project/shs and https://www.drupal.org/project/hierarchical_select which work with terms as hierarchy selects but these modules are not work as expected as we usually want and have lot of bugs and performance issues. First module is very good but it does not work as we usually want and secondly it does not support jquery chosen and select2 and second module is very old but still have lot of bugs and stability issues. Term Hierarchy is new module which fill all flaws the above modules have. Here is the following features

1- Developed according to Drupal standards.
2- Used Drupal Ajax Api.
3- Support select2 and chosen plugins.
4- Support hierarchy of max 10 levels.
5- Performance improvement.

Note: Term hierarchy module use drupal cache so if you re-arrange the terms or create new term and terms are not showing accordingly to terms structure then clear cache.

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