Actually, what is described in the OP is exactly how modern manufacturing is done. The process and equipment is sized to the market. The general idea is to make exactly as much of the product as will be consumed, when and as it is consumed. In theory, if the process and production methods are designed correctly, it IS possible to make a profitable product in any size market. The company I work for is a niche electronics producer and this is how we work everyday. The part that seems to make it profitable or not is the amount of inventory that has to be managed (less is better) and how you account for it or so I am told - I'm not an accountant.

The batch nature of film production changes the scenario somewhat, but if they could stock small master rolls of their emulsions with long enough shelf life to allow the roll to be fully consumed, then each week (for the sake of argument) they would spool up enough rolls to fulfill that weeks sales, or, better yet, preferably on demand and by order.

Walking through our fairly small plant I did a mental exercise as to whether film (color and b/w) film could be made in that facility and I decided it could, but you'd have to do it by the sort of model described in the OP.

They might have some very good people advising them. What is described is not that far fetched. If they could make the emulsion for Panatomic-X and Kodachrome using the equipment they describe, the rest of it just might be an exercise for the accountants.