Producing only what is necessary for personal use/survival subsistence free enterprise

The answer is : Subsistence

This method is very common among civilizations that live far away big/developed cities.

Many tribes in south east Asia for example, tend to only hunt and gather fruits/vegetables that they will consume for that day only. They will go out and hunt again on the next day in order to fulfill tomorrow's need.

Free enterprise tend to be driven by demands and profit. So companies tend to produce as much as they can in order to acquire as many customers as possible.  This is why over production is very common in free enterprise system.