The volume of freight vehicles operating within city boundaries is steadily increasing, which contributes to road congestion, especially in urban areas with a parking deficit. The proper identification of the location and size of commercial parking lay-by areas, where delivery vehicles can park for a limited time to perform loading/unloading operations, can relieve road congestion. Compared to the existing literature, this paper presents an improved two-stage approach, which includes a mathematical programme and a simulation model for determining the location and sizing of lay-by areas. The robustness and soundness of the results from a methodological and practical point of view are discussed using an example application. [ABSTRACT FROM AUTHOR]