In this instance, for resolution, the client is having the report created in smaller segments (50-60,000 pages), so that the indexing can be done.
Note: Here it is a SARBCH /INDEX job that received the S878 condition. If the logical view is implemented, the next application job that creates a report that will use that indexing, will abend with a S878 condition, if not enough REGION is allocated.
The client deleted the report, recreated the report (in segments), had View collect the report, and the indexing was done without abends.