Integrating collection-and-delivery points in the strategic design of urban last-mile e-commerce distribution networks

•We consider multi-echelon distribution networks with the use of collection-and-delivery points.•We formulate a non-linear optimization model that includes CDP location decisions.•Our model accounts for changes in demand patters occurring with the placement of CDPs.•We formulate extended routing cost approximation formulae to enable application to large-scale problem instances.•We propose a heuristic solution method and our approach to a real-world case study.