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Chapter Point - This is the place where main stocks are stored in the flow of goods flows. This point separates the areas of independent and dependent demand in the flow of the material. Independent demand arises outside the enterprise and has no relation to other needs for the item. This demand is determined by forecasting, as opposed to dependent demand, which can be determined in a deterministic way.

The separation point concept was driven by the desire to reduce total stock levels in the supply chain. Location of chapter point

Depending on the location of the chapter point, the parameters of the order and the cost of the stock are changed. There are five typical locations for a chapter point. They also define the basic variants of the logistics system of a given company:

The location determines how the inventory is managed. It may vary from manufacturer to manufacturer. Bibliography

wiki

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