The ISD LIFO pallet rail-shuttle system eliminates aisles and converts the end of each lane into an active storage and retrieval position; each lane holds up to 10 positions or more. The system uses mechanical force to move pallets in or out on rails. After the first pallet is loaded, the second loaded pallet pushes back on the first. When the front pallet is removed from the system, other pallets in the lane automatically move forward on the chain, positioned for sequential retrieval. Engineered for food and beverage processing facilities, the system can be installed on new or existing pallet rack and drive-in systems.