How does the increase of MNR items over several days affect operation costs?

When the number of MNR (Missing, Not Received) items increases over several days, it can lead to higher operational costs due to inefficiencies in the system. This situation often causes delays in processing and fulfillment, as operations may need to spend additional time identifying, locating, or replacing these items. The effort required to manage and rectify the discrepancies not only consumes labor resources but may also involve additional shipping costs for replacements or adjustments in inventory management.

As MNR items accumulate, teams may also need to work overtime or reorganize their workflow to address the backlog, further contributing to increased labor costs. Additionally, the overall disruption can affect customer satisfaction and lead to potential losses in sales or penalties for late deliveries. Thus, the cumulative effect of managing increasing MNR items can strain operational efficiency and escalate overall costs, making it essential for businesses to address this issue promptly to maintain cost-effectiveness.