In the Settlement Items/Resource pane, if a item is assigned a maximum quota (I didn’t try it with minimum), production is halted as expected. However, when those items are used, or traded at the trading post, causing the total amount to fall below the quota, production is not automatically restarted.
This is not a bug. It has to go below the min quota to resume production. By default, the min quota is set to 50% of the max.