This activity is used to compress the order schedule.
As late as possible scheduling will make the succeeding operations to be scheduled as close as possible to the required date while preceding operations can not move closer due to resource restrictions or scheduling rules. Sometimes planners plan operations manually so that succeeding operations are scheduled far away in time from preceding operations. Even though the schedule is correct, this create unnecessary work in progress build up. Schedule compression will bring these succeeding operations which are scheduled away from the preceding once closer to preceding operations and therefore reducing the gap between them, and thereby minimizing the work in progress.
There should be orders which has necessary basic data for scheduling.
Operations will be compressed. This might result in reducing work in progress and total processing time of the order. But since the order might finish before it is actually required (succeeding operations moves back in time away from required date), there would be stockholding for finish works.