Mark off with tape the area that is required to safely operate each tool in your shop. Select areas for lumber storage that do not overlap these areas.
Mark out a location for new lumber that is closest to the main entrance through which you bring your lumber. Position tools in close relation to this, if possible, so that material comes in and is easily moved to the areas where it will be cut and machined.
Mark a clear path with tape between your scrap lumber storage and the cutting tools, since many smaller parts can be made from the cutoffs of larger pieces. Ensure that the path will remain clear for easy and safe transport of material.
Stack board lumber horizontally so that boards are easy to lift and remove from the stack. Position braces underneath your lumber at least every 24 inches of length to prevent bowing. Keep this lumber rack clear of doors and parallel with traffic ways to minimize boards sticking out, which can be a tripping hazard.
Build a rack divided into horizontal shelves for large quantities of board lumber. Stack boards only two or three deep to minimize lifting and eliminate the risk of avalanche, or rolling lumber, which can cause injuries through crushing or tripping.
Store scrap board lumber in vertical bins, tall enough to cover the bottom half of the longest common scrap pieces. Sort through your scraps and remove pieces that contain fasteners and other hardware that may cause injury. Cut off jagged or dangerously pointed ends before storing.
Install vertical slot storage for your sheet lumber. Attach lumber framing from the floor to the overhead joists to lean your sheet lumber against. Store it upright, with the narrow end on the floor to allow it to be easily pulled out of the rack.
Create your lumber rack with divisions large enough for no more than six sheets of material, with enough room to sort, insert and remove pieces easily.
Store scrap plywood in the same way, using a smaller rack. Cut off odd pieces to create large, usable pieces that will easily fit in the rack without sticking out.