The repository needs to be set up for the OVM Server.
In Oracle VM: OVS Repository Design and Storage Considerations (Doc ID 794198.1), several design criteria are enumerated. My design decisions are as follows:
From Oracle VM Server Repository - Directory Structure and Usage (OVM2) (Doc ID 468101.1), the following directories are created:
cd /OVS
mkdir iso_pool
mkdir publish_pool
mkdir seed_pool
mkdir shareDisk
mkdir running_pool
An additional directory was created for the extraction of uploaded template files:
cd /OVS
mkdir scratch