You might see this error for example when you install applications in a task sequence when the computer is not domain joined (in a workgroup).
We can see here that the error arise when installing the first application:
Taking a closer look at SMSTS.log shows MP list missing in WMI, sending message to location service to retrieve MP list and retrying.
In this case the problem is that we are dealing with a workgroup computer and that it is not able to do normal MP lookup.
By using the SMSMP switch with the FQDN of the desired Management point we are able to fix this issue.
For more information about the SMSMP switch please see:
http://technet.microsoft.com/en-us/library/gg699356.aspx and