Throughout this document, we will assume that all the packages that were downloaded are placed somewhere in $LFS/usr/src.
A convention you could use is having a $LFS/usr/src/sources directory. Under sources, you can create the directory 0-9 and the directories a through z. A package like sysvinit-2.82.tar.bz2 is stored under $LFS/usr/src/sources/s/. A package like bash-2.05.tar.bz2 is stored under $LFS/usr/src/sources/b/, and so forth.
The next chapter contains the list of all the packages that need to be downloaded, but the partition that is going to contain our LFS system isn't created yet. Therefore, you should store the files somewhere else and later moved to $LFS/usr/src/ when the chapter in which the new partition is prepared has been finished.