Each server is administered individually - policies are managed locally but the Default Parent Policy is inherited from the upper server

The configuration from the previous scenario also applies to this scenario. However, Server A has the Default Policy for Lower Servers enabled and policies on the lower servers inherit the configuration of the Default Parent Policy from the master server. In this scenario, the local administrators are given a large degree of autonomy to configure policies. While the child Policies on lower servers may inherit the Default Parent Policy, the local administrators can still modify it by their own policies.