1. Create a repo file in /etc/yum.repo directory.
#vim /etc/yum.repo/myrepo.repo
you can use either "nano" or "vim".
2. Add following statments.
[myrepo.repo]
name=myname
baseurl=file:///media/Server
enabled=1
gpgcheck=0
save and exit
i mounted the red hat dvd to media directory. rpms are in Server directory. you can use any directory you want.
3. Open the yum.conf file.
#vi /etc/yum.conf
find the line "gpgcheck" and make it 0 (gpgcheck=0)
save and exit.
4.Run following commands;
#yum clean all
#yum update all
Now you can easily install any package without looking for package in dvd
ex;
yum install httpd