I put together a catalog of my entire collection of LP's and CD's, reading artist name, album title, and album label and album number into a Dictaphone, album by album.
I then paid my secretary to transcribe everything onto an Excel document.
Being computer-ignorant, I was frightened by the Excel file, so I copied the contents and pasted it into a Word file, and then hit "alphabetize".
The listings are arranged by CD's and LP's, and further subdivided by genre, e.g., classical, jazz, rock/blues, box sets, other.
I have the catalog in a three-ring binder. It is 40 pages single-spaced, sits in a drawer, and I never look at it. It is about twenty albums out of date now.
As for actual arrangement of LP's and CD's, maybe 2/3rds are with us where we are currently living, and the balance is in our other place. The LP's and CD's are sort of in alphabetical order by genre, with special sections for Dylan, Vengerov, the Stones, favorite items, etc. There are also three LP piles propped up against the walls, etc., of frequently played titles, and a varying stack of recently played or plan to play CD's sitting next to the CD holders.
The catalog is nice for insurance purposes, but the real arrangement is irrational and heart-felt (like music).