Create the pool on your server or cisco router/switch , the packets flow as follows in screenshot client starts it off with discover looking for an address, you can see these if you use a wireshark on your laptop and try obtain an address or if you debug dhcp detail on your device
ip dhcp pool TEST
network 172.16.0.0 /16
domain-name cisco.com
dns-server 172.16.1.102 172.16.2.102