What triggering event causes the location hierarchy rebuild?

If a client is running on the TRIRIGA 3.4.1 platform, they will run into a problem regarding the location hierarchy rebuild process that occurs via nightly processing. I understand that Fix Pack should address this (IV72394), but finding this issue raised the following question in my mind.

Is there a triggering event that causes the rebuild of the location hierarchy (such as adding a building) or is this just always done, regardless of whether anything has changed in the location hierarchy? Additionally, would this hierarchy rebuild process potentially negatively impact performance, especially if it is left unaddressed?

[Admin: This post is related to the 04.17.15 post about IV72394, and the 06.18.15 post about rebuilding the hierarchy tree cache taking a very long time.]

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