Microsoft Office does this little mini-install (or auto-repair) method the first time you execute an Office application...but you don't have to supply the original source location.
They probably do this by caching all the resources manually in another location. Because they have an EXE that bundles the MSI package, to offer extra-features, they can do that.
Advanced Installer can do the same, i.e you can configure it to create an EXE with the MSI and CAB files inside, and specify an extraction path for it accessible to all the user accounts, so the auto-repair can find the resources without asking for the original package. Here is an example of such a path:
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So, to enable the executable you need to go to Media page, Bootstrapper tab. After you have enabled it and set the files to be included in it, specify the extraction path from above. Also, very important, make sure you tick the option "Do not delete extracted MSI and CAB files"
, so they remain on the machine for the other users too.
Let me know if this solution would work better for you or if you have any questions.