How do I install packages via DVD / CD using yum command under CentOS Community Enterprise Linux version 5.x?

CentOS Linux comes with CentOS-Media.repo which is used to mount the default locations for a CDROM / DVD on CentOS-5. You can use this repo and yum to install items directly off the DVD ISO that we release. Open /etc/yum.repos.d/CentOS-Media.repo file, enter:
# vi /etc/yum.repos.d/CentOS-Media.repo
Make sure enabled is set to 1:
enabled=1
Save and close the file. To use repo put your DVD and along with the other repos, enter:
# yum --enablerepo=c5-media install pacakge-name
To only use the DVDmedia repo, do this:
# yum --disablerepo=\* --enablerepo=c5-media install pacakge-name
OR use groupinstall command
# yum --disablerepo=\* --enablerepo=c5-media groupinstall 'Virtualization'

See Also:

RHEL 5.x user can use the following tutorial to install files from DVD / CD using yum:

1. Howto Setup yum repositories to update or install package from ISO CDROM Image

Howto Setup yum repositories to update or install package from ISO CDROM Image

yum (Yellow dog Updater Modified) is a package manager for RPM compatible Linux systems such as CentOS, Fedora core and latest Redhat Enterprise Linux.

So how do you use yum to update / install packages from an ISO of CentOS / FC / RHEL CD?

Creation of yum repositories is handled by a separate tool called createrepo, which generates the necessary XML metadata. If you have a slow internet connection or collection of all downloaded ISO images, use this hack to install rpms from iso images.

Step # 1: Mount an ISO file

Type the following command (replace iso file name with the actual iso file):
# yum install createrepo
# mkdir -p /mnt/iso/{1,2,3}
# mount -o loop /path/to/centos1.iso /mnt/iso/1

Step # 2: Create a repository

Use createrepo to generate the necessary XML metadata. Type the following commands:
# cd /mnt/iso
# createrepo .
Clean repo, enter:
# yum clean all

Step # 3: Create config file

You need to create a repo config file in /etc/yum.repos.d/ directory.
# vi /etc/yum.repos.d/iso.repo
Append following text:
[My ISO Repository]
baseurl=file:///mnt/iso
enabled=1
Save and close the changes.
Now use yum command to install packages from ISO images:
# yum install package-name


REFERENCES
http://www.cyberciti.biz/faq/centos-linux-install-packages-from-dvd-using-yum/
http://www.cyberciti.biz/tips/redhat-centos-fedora-linux-setup-repo.html