We propose an efficient algorithm for the purpose of satisfying a wide range of design constraints represented with equality and inequality equations as well as production rules. The algorithm employs simulated-annealing and a production rule inference engine and works on design constraints represented with networks. The algorithm fulfills equality constraints through constraint satisfaction processes like variable elimination while taking into account inequality constraints and inferring production rules. It can also reduce the load of the optimization procedure if necessary. We demonstrate the implementation of the algorithm with the result on machine tool design.