The present invention is a method and apparatus for automatically generating an optimal configuration of a product having a complex design, using logic implemented on a digital computer processing system. A general configuration for the product will be broken down into a hierarchy of subdesigns by a designer of an artifact type, such as a bus. A particular instance of the product type must satisfy a set of external parametric constraints specified by a user. These constraints may take the form of a range of values for some performance characteristic of the product. Constraints may also be imposed for other reasons, such as governmental regulations or business requirements. The hierarchical decomposition facilitates the solution of highly complex problems. Criteria for a best solution may be specified for a given subdesign, for a collection of subdesigns, or globally. The tentative selection of a particular subdesign may impose internally generated parametric constraints upon a subsequent subdesign solution. If no acceptable solution is found for a given subdesign, the candidate overall configuration is rolled back to the most complete viable partial collection of subdesigns. The method transforms the constraints into a concrete design. The method will ordinarily be executed on a digital computer, and the instructions to program the computer will be stored on tangible digital media.