I use the Bonnie Hunter (Quiltville.com) method for sizes except anything smaller than 2 1/2" strip goes into the string bag for string quilting (made several and the "boxes of strings" from QB) . ( I used to cut 2" but no longer and I still have some 1 1/2" strips but no longer cut those sizes) I sort the 2 1/2" strips by color and then roll them up like a jelly roll before putting them in a drawer. She says when she cuts up her left overs she cut the largest size she can make first and goes down the line ie. 10 1/2" (10 1/2" squares can be sewn together for a backing but i like to use them to make stars for a large star block quilt), 8 1/2" (plays nice with a 16 patch of 2.5" squares), 6 1/2", 4 1/2", 3 1/2", 2 1/2". I cut strips if it is as long as 16" (2.5" strip used in her scrappy trip around the world - I've made more than one of these, I love them!) but if not I'll cut it down into squares or for the 2 1/2" I will make 2 1/2" x 4 1/2" bricks and then the squares if I can't make a brick. I have made several of her scrappy patterns with the 2 1/2" squares because I use them as leaders and enders but I am now wanting to use up the larger squares. I have lots of scraps that have been given to me but I have so much already cut up that the scraps that I haven't cut into yet are stored by color family in the Serlite 3 drawer cart (I have two completely full!) when I am working on a project and I have pulled all the pre cut sizes I already have then I pull from 3 drawer carts. If it is a really small scrap, they are sorted by color for "15 minutes of play" blocks. Those are sorted in emtpy clear plastic peanut butter nuggets containers from Costco. One for each color. I am crazy for sure about using scraps and making scrappy quilts. I have posted pictures of several.(but not all as I forget and they get given away mostly to various charities) I enjoy seeing how "Paint me Judy" from this board uses scraps given to her. However, I wonder how she is doing as I haven't seen a recent post from her. I hope she is ok....
Sorry for being so wordy! and I hope it all makes sense.