I don't have a definitive way of deciding which level guys play at. Its mostly how they have performed and where they can get regular at-bats.
The only steadfast rule I have is that draft picks typically start in Single A, but no higher than Double A for their first season. Single A can get to Double A due to injuries/roster management, but that's it.
Outside of that, its where can a guy that I'm high on get regular at-bats and time in field. For example, the way my roster is constructed, Jordan Walker and Victor Scott II are currently in Memphis due to getting regular at-bats. I've called up Walker due to injury when he was able to DH and field everyday, but I don't want him sitting the bench as a role player.
So yeah, thats how I approach players and which level they play.