Buffer orders are normally only used within companies that have contracted manufacturing or production responsibilities. These contracts may be short or long term, but require you to hold a minimum quantity of raw materials during the term of the contract. Buffer orders are usually built by exploding the Bill of Materials for the finished goods specified in the contract removing any machine or labor components. When the buffer order is posted it serves to increase the minimum and maximum stocking quantities used in the auto-reorder process. When the buffer order is no longer required it may be closed or removed which immediately reduces the reorder quantities appropriately.