The invention is a method and apparatus for automatically generating an optimal configuration of a product, using logic implemented on a digital computer processing system. A general configuration will be broken down into a hierarchy of subdesigns by a designer of an artifact type. A particular instance of the type must satisfy user-specified external parametric constraints. Constraints may take the form of a range of values for some performance characteristic or to satisfy laws or business requirements. Hierarchical decomposition facilitates solution of complex problems. Criteria for a best solution may be specified for a given subdesign, a collection of subdesigns, or globally. Tentative selection of a particular subdesign may impose internally generated constraints upon a subsequent subdesign. If no acceptable solution is found for a subdesign, the candidate overall configuration rolls back to the most complete viable partial collection of subdesigns. The method transforms constraints into a concrete design.