Cities require goods and related logistics services, which has economic, political, environmental, and social implications. The research develops an simulation-optimization model for the implementation of automated parcel lockers (APL) as one solution for urban logistics (UL) operations. First, we consider a system dynamics simulation model (SDSM) to evaluate and predict the system behaviour in the macro planning level. Second, a facility location problem (FLP) is used for the micro-planning level to decide how many APL to open or close and where to locate them to minimize the total cost. We consider the dynamic behaviour of APL variables using the SDSM outputs as a inputs of an FLP and vice-versa. The aim of the model is to prevent an implementation failure of APL as a sustainable solution for the cities.