This image is an example of an inheritance model.

The model consists of two branches: logical and physical.

In the logical model, the policy is applied to a domain and is inherited by the customer, then the V P N, and then the site.

In the physical model, the policy is applied to a root network and is inherited by the network, then the device, then the interface, then the subinterface and the VC endpoints.

The two branches converge, for C E devices, at the site and the device level and, for P E devices, at the site and the interface or subinterface level.