Managing resources in a multi-level switch assembly system, includes a resource tree with the multiple hierarchical levels, wherein a first level device is associated with a first level, one or more second and third level devices are associated with lower, second and third levels respectively, and so on. Cost tokens are assigned to the various devices based on their corresponding resource requirements. Resources of the multi-level switch assembly system, such as, ports and/or bandwidth, are dynamically allocated to the first, second, third level devices, and so on, based on their corresponding cost tokens in a hierarchical manner.