To enable package caching so that the package files downloaded by yum stay in cache directory.

HOW TO CREATE A LOCAL YUM REPOSITORY CONTAINING MANUALLY DOWNLOADED RPM PACKAGES

To configure yum to retain downloaded files rather than discarding them, set the keepcache option in /etc/yum.conf to 1.
To change the location of yum cache from the default, adjust the cachedir option in /etc/yum.conf as needed.

Get current yum configuration details

[root@dbpilot ~] cat /etc/yum.conf |grep -v "#"
[main]
cachedir=/var/cache/yum/$basearch/$releasever
keepcache=0
debuglevel=2
logfile=/var/log/yum.log
exactarch=1
obsoletes=1
gpgcheck=1
plugins=1
installonly_limit=3

Create a new directory for storing cached packages

[root@dbpilot ~] mkdir /tmp/cachedRPM

Edit the cachedir and the keepcache parameters

[root@dbpilot ~] cat /etc/yum.conf |grep -v "#"
[main]
cachedir=/tmp/cachedRPM
keepcache=1
debuglevel=2
logfile=/var/log/yum.log
exactarch=1
obsoletes=1
gpgcheck=1
plugins=1
installonly_limit=3

Install required packages. For instance, vim and mlocate

[root@dbpilot ~]  ls -l /tmp/cachedRPM
total 0

[root@dbpilot ~] yum install vim-enhanced mlocate -y

Confirm that yum cached packages in the custom directory after successful installation

[root@dbpilot ~] rpm -qa |egrep "vim-enhanced|mlocate"
vim-enhanced-7.4.160-1.el7.x86_64
mlocate-0.26-6.el7.x86_64

[root@dbpilot ~] ls /tmp/cachedRPM
mlocate-0.26-6.el7.x86_64.rpm  vim-enhanced-7.4.160-1.el7.x86_64.rpm

Written At

05 FEB 201814:00

Red Hat Release

7.3 x64