It becomes very difficult to achieve needed coordination among channel members, as one would expect, conflict in marketing channels could also be caused by differences in the domain definition among channel members. The intensity of channel conflicts can range from minor flare-ups that are easily forgotten to major disagreements resulting in terminations or lawsuits.Using the system dynamics as a tool to analyze and understand the cause and effect of all significant variables and relationships affecting the rate of overlap in the wholesale channel, the research brings to close that, pressures exerted by producers on channel members, through incentives, intense number of channel members, less focus from producers on long term objectives and investing in strengthening brands, are the major elements of channel such a channel conflict. As the main research objective is to develop a generic model for managing channel conflict in the lubricants distribution channels in Egypt, to simulate future possibilities with different focus scenarios, a model was developed, tested and validated with respect to the Egyptian market, and the research is recommending the generic model to be tested and used for different industries using marketing channels.