Which production system tailors products to meet the needs of large numbers of individual customers?

The production system that tailors products to meet the needs of large numbers of individual customers is known as Mass Customization.

Here are the steps explaining how it works:

1. Customer Interaction: The process begins with understanding the customer's needs. This is usually done through interactive methods, such as online surveys or personalized customer interfaces.

2. Product Design: Once the customer's needs are understood, the product is designed accordingly. This involves using flexible manufacturing systems that can produce a wide variety of products.

3. Manufacturing: The product is then manufactured according to the custom design. This involves using advanced manufacturing techniques that allow for high levels of customization.

4. Delivery: The final step is delivering the customized product to the customer. This often involves sophisticated logistics and supply chain management systems to ensure timely delivery.

In summary, Mass Customization is a production system that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.