To meet the SLA of responding to incoming cases within 2 hours, assigning cases to queues and using Escalation Rules to escalate unassigned cases within 1 hour is the best practice. This approach ensures that cases are promptly assigned to the appropriate agents, and escalation rules help to prioritize and alert agents or managers to cases at risk of breaching the SLA, facilitating timely responses.

Explanation
This is the recommended configuration to meet the requirements, because it simplifies the setup and ensures consistency between Case and Work Order entitlements. When a Work Order is created from a Case that has an Entitlement Process, the Work Order automatically inherits the same Entitlement Process as the Case. This means that CK does not need to create separate Entitlement Processes for Case and Work Order, or use triggers or workflows to assign them. Verified References: : Work Orders and Entitlement Processes