Not sure what is going on here, but here are a couple of thoughts.
Each Zone is assigned an order ID so that zones can be sorted in a manner that is not alphabetically ordered.
I'm wondering if at some point you had two zones with the same name, different (order IDs), deleted the one, but the order ids on the others weren't updated.
This is pure guess, but given that the report data is strictly sorted on the values that exist in the DTL, I think we may be seeing an issue caused elsewhere in the application.
the easiest test would be to note the items that are showing up in the second grouping of the zone (or first depending on which has less items). In SI, unassign the zones and reassign them. See if that doesn't fix the issue.
Again, this is all guess, but I think it may be part of the issue.
-R
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