How does memory compaction enhance memory utilization and reduce fragmentation in memory management systems?

Memory compaction is a technique used in memory management systems to reduce fragmentation and improve memory utilization. It involves rearranging memory by moving allocated memory blocks closer together to create larger contiguous blocks of free memory. This process helps in accommodating larger processes and reduces fragmentation by minimizing the number of small gaps between allocated memory blocks. As a result, memory compaction enhances overall memory utilization and reduces the impact of fragmentation on system performance.