I believe it would be an improvement if you could merge single units [1] into parties [4] and parties into squads [8] and a squad and a party or three parties into company [12] (or three squads into two companies). You should only be able to do this in towns that are able to produces them. When you combine them the xp gets averaged out less one third and it takes a season or two.
It would also be good if you could upgrade units. Every time you upgrade a unit it loses one third of its xp, so you have to chose between the loss of xp and upgrading its equipment.
I believe that having to train up new units all the time slows the game down.
it might be sufficient penalty for the equipment upgrade to take a season - (more if the equipment would normally add to unit training time like bows)
It would also be good to be able to add further recruits back into a group where individuals have been killed - some form of averaging of experience would seem appropriate for that too.
It may also be more balanced if some of the larger units took more time to train, perhaps an extra season or 2 for the larger units, that would make some of the smaller units still viable late on in the game.
I think it could work, if like the Total War game a group was composed of set individuals.
Effectively by doing this, logistics would increase the stack sizes and decrease training times (groups of 3 should train faster then training 3 individuals) , which is what it should do.
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