Reorder Amount should also be in stock units of measure, not purchase UM

Reorder AMOUNT has always been Purchase Units (box, roll, etc).
If conv factor is 100, then placing 1 unit on PO and then receiving 1 unit results in qty 100 added to on hand.
 
Reorder LEVEL has always been Stocking Units (usually EA).
When the on hand value drops BELOW this, a purchase request is generated.
 
We use the Re-order report to create PO's.  The rules Outlined above hold true for the re-order report.
MRP and the Re-order report should follow the same rules.
 
We have many surface mount components the we order on reels of 100, 500, 1000, etc.
We have Reorder LEVEL at stocking units, and Reorder AMOUNT in purchase units.
This works perfectly using the Re-Order Report.
 
If this is wrong, or if MRP works differently, please correct me.  

That seem right to me.
You have Re-order qty set to 17 lengths.  When stock dips BELOW your Re-order level (624 inches),  
you would place an order for 17 lengths.  When you receive these 17, it will multiply 17 * the conversion factor (78)
and inventory the whole shoot'n match in inches.
 
I don't see the problem.