In dynamic partitioning the memory is split into partitions as and when processes come in. The problem with this approach is external fragmentation. External fragmentation means there is enough space for a new process in memory, but the available memory is not contiguous. So, even though memory is available, new process cannot be placed. This can be solved by doing compaction i.e. shifting the current processes in memory so that they are placed continuously. This moves all the empty spaces together.

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