An approach that tries to match the output of manufacturing with market demand, in order to minimize inventories is called

Just in Time (JIT), as the name suggests, is a management philosophy that calls for the production of what the customer wants, when they want it, in the quantities requested, where they want it, without it being delayed in inventory. So instead of building large stocks of what you think the customer might want you only make exactly what the customer actually asks for when they ask for it. This allows you to concentrate your resources on only fulfilling what you are going to be paid for rather than building for stock. Within a Just in Time manufacturing system, each process will only produce what the next process in sequence is calling for.