The flow of two-dimensional drops suspended in an inclined channel is studied by numerical simulations at non-zero Reynolds numbers. The flow is driven by the acceleration due to gravity and there is no pressure gradient in the flow direction. The equilibrium position of a drop is studied as a function of the Reynolds number, the Capillary number, the inclination angle and the density ratio. It is found that the drop always lags the undisturbed flow. More deformable drops reach a steady state equilibrium position that is farther away from the channel floor. For drops that are heavier than ambient fluid, the equilibrium position moves away from the channel floor as the Reynolds number is raised. The same trend is observed when the inclination angle with respect to horizontal direction increases. When the inclination angle of the channel with respect to horizontal direction increases, the equilibrium position of a heavier drop moves away from the channel floor. Result is in agreement with computational modeling of Campbell and brennen on chute flow of granular materials. For neutrally buoyant drops the equilibrium position weakly changes with inclination angle. For drops that are lighter than the ambient fluid, the equilibrium position moves towards the channel floor as the inclination angle increases. The behavior agrees with computational modeling of chute flow of granular materials. A drop that is lighter than the ambient fluid reaches a steady state equilibrium position closer to the channel floor when the Reynolds number or inclination angle increases. The lateral equilibrium position of drop depends on the drop deformation. The equilibrium position moves away from the channel floor as the Capillary number or drop deformation increases. The result is consistent with experimental findings of Karnis et al and numerical simulations of Zhou and Pozrikidis at zero Reynolds numbers. Simulations of 40 drops in a relatively large channel, show that drops move away from the channel floor when the density ratio is larger than unity. The behavior is similar to that observed in granular flows. The effect of the Reynolds number, the Capillary number and density ratio on the distribution of drops and the fluctuation energy across the channel are investigated. It is found that drops tend to stay away from the channel floor, which is consistent with the behavior observed in granular flow regime. Drops try to stay away from the channel floor in the simulations performed here. The maximum concentration appears at some distance away from the floor which depends on the effective parameters of the flow.Drops that are less deformable will further stay away from the channel floor. Also, drop appear at a larger distance from the floor as the Reynolds number increases. Simulations at large density ratios show that results are more compatible with computer simulations of granular flows. The behavior observed here resembles more to granular flow regime when the restitution coefficient is low. Simulation performed here by solving the Navier-stokes equations agree with computational modeling of granular flows under some specific restriction. Specifically, granular flow simulations are more compatible with current results with low restitution coefficients. keywords: Reynolds number, Capillary number, Density ratio, Inclination angle, Bond number, Equilibrium position, Fluctuation energy, Density drop distribution.